Nasdaq (NQ) Daily Trade Plan: Navigating a Huge FOMC Day
With a Rate Cut Imminent, Here's How to Trade the Pivots and the 'Preferred' 4H Long at 24,095.75.
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Good morning, everyone. Today is Wednesday, September 17th, and we have a huge day ahead of us. It is FOMC rate announcement day.
The rate decision will be released at 2:00 PM ET, but the real excitement comes at 2:30 PM ET when Fed Chair Powell gets on the mic. What he says about the economy will be the biggest driver of volatility. To add to the complexity, we are in the middle of contract rollover, which makes volume for NQ futures extremely thin. Let's get into the levels.
A Trader's Warning on FOMC Day
Before we get to the levels, a heads-up: I personally do not trade FOMC. I will trade up until lunchtime and then turn my charts off. The moves are erratic, news- and algo-driven, and while you can sometimes get lucky, most of the time you don't. The risk is simply too high. My recommendation is to let the dust settle and come back tomorrow. The volatility can be enticing, but the warning has been put out there. Do as you must.
A Note on Contract Rollover
I have not rolled over yet. I am still trading the September (U) contract and will not be switching to the December (Z) contract until this coming Sunday for the Weekend Review.