Outlook 11/07: Stock futures gained slightly after a huge market rally following Donald Trump’s decisive victory in the presidential election. Traders are also awaiting the Federal Reserve interest rate decision Thursday afternoon. Market participants will closely monitor the interest rate decision and Chair Jerome Powell’s subsequent press conference. Fed funds futures are currently pricing in a 100% likelihood that the central bank lowers the borrowing cost at this gathering. A rate reduction Thursday would mark a second straight cut after the Fed’s decrease in September, which was its first since 2020.
ESZ24 (DEC2024): YVAH 5957 YPOC 5936 YVAL 5911 GAP 5957
/ES Plan: Yesterday market closed bullish (PBT 6055), and overnight continues on that way, moving above previous value/range, so these're the opening and initial balance options for current session:
A) If market remains above YHOD 5967 with bullish internals, buy towards ONH 5978 and PBT 6055 magnet.
B) If market moves below YHOD 5967 with bearish internals, sell towards YVAH-GAP 5957 and YVAL 5911.
Note: Market opens above value and if it begins to trade within value,
VAR comes into play.
FOMC days are two separate sessions. The AM session tends to involve a tightening price range and lower activity. Trade setups that work well in the AM, may fail completely in the afternoon, resulting in significant losses. Today is NOT the day to trade aggressively. On these high volatility days, a lot of money could be made and lost but your first trading rule is 'manage your risk', sizing small with less /ES emini contracts or using /MES micro futures.
Market Movers
10:00 AM Wholesale Inventories
10:30 AM EIA Natural Gas Inventory
02:00 PM FOMC Announcement
02:30 PM Chairman Press Conference
03:00 PM Consumer Credit
04:30 PM Fed Balance Sheet
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