Wednesday, July 31, 2013

FOMC = Volatility

Today the FOMC statement was released at 2PM, together with the interest rate decision (unchanged). The market tends to react to that news with lots of volatility. At first, indices, oil, euro went up, then they all reversed (indices making new lows for the day) only to bounce back up and make new highs.

Oil managed to close on those highs, but metals and the euro gave back some of the gains. Indices did even worse and went right back to the lows in the last minutes of the session. Unbelievably volatile moves today...

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro broke 1.33 intraday, and pulled back to land right on the spot.

Big winner of the day was oil. Up 2% and printing a bullish engulfing candlestick. Good chance we will revisit recent highs next week. But first wait for the job report this Friday. Anything can happen right then...

Metals: copper had a decent bounce higher, +2.6% and held on to those gains. Gold and silver first went firmly lower, only to bounce back in the green on the FOMC-statement. But both gave back some of the gains so that gold ended slightly red, but silver still nicely green.

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