Waiting for FOMC

“In ‘Confessions of a Winning Poker Player’, Jack King said, ‘Few players recall big pots they have won, strange as it seems, but every player can remember with remarkable accuracy the outstanding tough beats of his career.’ It seems true to me, cause walking in here, I can hardly remember how I built my bankroll, but I can’t stop thinking about the way I lost it.” – Mike McDermott (Rounders)

Despite the heightened headline risk across the board, the real focus this week is going to be the FOMC meeting. Remember that we have a lot of other key data out from around the world, including BOJ and BOE but again, it’s all about the FED and the expected ‘Dovish-Hike’.
As we have been discussing in detail, the tape continues to trade in a very heavy manner and we believe that this distributive phase, where we remain positioned in ‘sell the rally mode’, still has to resolve with more downside and and proper flush.
intraday, out focus will remain on keeping a very close eye in the action on both small caps and financials. Unless the market can manage to stabilize these, it is going to be very difficult for indices to hold any sustained bounce attempt.
Remember, historically, December Triple-Witching Week tends to be bullish and a lot of participants will be looking to play this seasonal pattern, along with the much awaited and anticipates Santa Rally.
Once again, this is going to be a KEY week, not only for indices but especially for the DXY. In today’s webinar, we will review current context, possible scenarios and how we will look to position for action into the end of the year and into 2019.
If you are interested in a more structured way of tackling the business of trading, attending a live daily morning call or a more detailed discussion on the charts we post / trade ideas, don’t hesitate to check out our Premium content.

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