Wednesday, December 18, 2013

Wednesday's Prospects: No Trades

Because of the Federal Open Market Committee announcement, I've decided put off analysis and potential trades of the symbols that survived my first round of analysis overnight. (See "Wednesday's Prospects".)

The announcement occurred amid a strong opinion that the Fed would begin cutting back on its economic stimulus, and that is in fact what happened.

It's an external regulatory event rather than something driven by the markets themselves, so I'm being cautious.

In terms of my rules, I'm treating the FOMC announcement and Chairman Bernanke's news conference as a sort of earnings announcement. That means any bull or bear signals among Wednesday's prospects must move beyond the 20-day price channel on Thursday or thereafter before I'll consider a trade.

I may well do the same with today's signals, which will be listed in "Thursday's Prospects", posted tomorrow.

See the "Earnings Exclusion" section of my trading rules, which can be found here as a Google text document.

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