Fed Statement Day Trend
That certainly felt like a quick six weeks since the Fed’s last statement day and press conference! Today, Yellen & Co. conclude their two day meeting with a statement to be released at 2:00 pm est and no press conference. As has been the case since the first taper last December, the Fed will reduce their assets purchases by another $10 billion to $25 billion per month on their to wrapping up quantitative easing this fall.
There has been a strong and playable trend during Fed statement days and today that trend is live. Stocks typically trade in a -.50% to +0.50% band until after 2 pm and then close today in the green. This trend has been successful more than 70% of the time since 2007. It has been noted of late that stocks push higher straight into the announcement and then sell off through the close but still end higher.
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