Typical Bullish Bias Before Fed

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March 27, 2006

I don’t know if you know this, but it is something well known. Like that weak riddle?

Before the Fed Announcement there is a bullish bias in the market up until the announcement at 2:15pm. Once the announcement is made, the market makes its direction known. Or does it?

The typical trade is bullish pre-fed > fed announcement > market makes its move > next day trade against the close.

The idea is to trade against whichever way the market closes on the Fed announcement day.


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