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How to Trade & Survive Fed Day (GLD, TBT, TLT, UUP, UDN)

June 20th, 2012

At 12:15pm et today the FOMC is expected to release its latest statement on monetary policy. The instant the Fed posts the statement it will be read aloud in its mind-numbing entirety then combed over, parsed and interpreted until the every last pundit on earth has had their say.


It’s all a waste of time and energy. We already know what the Fed is going to say and we’ve all seen the same rally in stocks over the last two weeks. Here’s everything you really need to know so you can get proactive this morning and play hooky this afternoon.

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How to Invest on Fed Day

None of the following is advice but I would play it as follows:

  • Take gains ahead of the release. What stocks do after the statement is a crap shoot. It’s random. Make your moves before 12:15pm if you’re going to do anything at all.
  • Ignore the initial reaction. The market is famous for jerking hundreds of points on FOMC headlines. Ignore the bouncing or watch it out of curiosity, but don’t trade it.
  • Don’t do anything. I cannot emphasize this enough; today is a splendid opportunity to do nothing much at all with your investments. Stocks will still be here in the morning.

See the full “Breakout” segment below:

Related: (NYSEARCA:TBT), (NYSEARCA:TLT), (NYSEARCA:UUP), (NYSEARCA:UDN), (NYSEARCA:GLD)

NYSE:GLD, NYSE:TBT, NYSE:TLT, NYSE:UDN, NYSE:UUP


 

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