FOMC Fed Day 29 October 2008

The next FOMC interest rate announcement will be on the 29 October 2008.

More details and charts about Fed Days

Here's an email exchange between myself and Raymond Dziedzic, from this post on 5 August 2008 that I'm repeating here for your benefit.

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Raymond wrote

Thank you for this heads up;

Please consider posting "Fed Announcement Alerts" one day prior to the actual meeting/announcement so we all can get a leg up;

Surely, if you look back at the record, the afternoon of the Monday prior to scheduled Fed Announcements/Meetings prove to be lucrative trading sessions . . .

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day trading wrote:

I was not aware that the day prior to Fed announcements was better than average for trading. Do you mind if I post your comment on the forum to see if other traders have experienced the same? Also, what type of entry/exit signals do you use that make this particular day better than average?

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quote:

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Raymond wrote:

Please use my comments and kindly credit me with them;

I trade the ES and follow the YM, NQ and AB to seek confirmation on perceive Buy or Sell Signals;

As for Signals, I use FutureSource WorkStation with Bollinger Bands (2 Stnd Devs) and a Slow Stochastic superimposed upon the streaming 1 minute CandleSticks with Volume Bars in a lower pane superimposed with a standard MACD;
On a split screen, I have a 3 minute CandleStick set up with a 9-min, 16-min, 20-min, and 50-min MA superinposition upon Price looking for turns or cross-overs;

Below that split screen, I have a Volume Pane with a MACD superimposition with a different Pane for an Oscillation used to gain a sense for Momentum . . .

One more thing, I also set horizontal lines at the 80% and 20% levels to see when Price enters into an Overbought or Oversold position . . .

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MS">MS">That is really interesting, because I was just telling my grown son recently that the day after the fed announcement is ususally an excellent trading day. I find more often than not, if what the fed does causes a huge rally on fed day, then the day after it will come back down, and if what he does causes a huge drop on fed day, then the day after it will go back up. Just an observation I have noticed over the years.

That would be an interesting test to run by just comparing closing prices over those three days - i.e. before, FOMC, and after.

DT & Iryb;

Thanks for the heads up yesterday & for tomorrow

Good and useful topic/post too bed I wasn't their to trade the 800 point move.
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Press Release
Federal Reserve Press Release

Release Date: October 29, 2008
For immediate release

The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent.

The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures. Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports. Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit.

In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate in coming quarters to levels consistent with price stability.

Recent policy actions, including today’s rate reduction, coordinated interest rate cuts by central banks, extraordinary liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth. Nevertheless, downside risks to growth remain. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Elizabeth A. Duke; Richard W. Fisher; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh.

In a related action, the Board of Governors unanimously approved a 50-basis-point decrease in the discount rate to 1-1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Cleveland, and San Francisco.