Enlarge any chart by clicking on it.

Unless otherwise specified, ALWAYS use the 15min chart to enter my recommended plays because
CONFIRMATION is a MUST. In other words, you need to see a 15min candlestick that CLOSES beyond
the entry point, then enter when it moves 10cents after the high/low of that candlestick.

Tuesday, June 16, 2015

SLB, WHR, SPX

Tomorrow is FOMC Day (so every play is aggressive). If the Fed starts raising interest rate it will be bullish for stocks for the following reasons (that I can think of):
1) Rate hike has already been priced in. It should be no surprise since they have been talking about it for such a long time. So instead of "buy the rumor, sell the news", the market is in "sell the rumor and buy the news" environment.
2) Popular belief is that the market is going to drop if the Fed starts raising rate. (This doesn't line up with historical trend. Rising interest rate environment is bullish for stocks because it is indicative of strength not weakness.) This is actually good for the bulls because the market likes to do the opposite of what the masses think.

So if the Fed starts raising rate tomorrow, expect an initial drop lasting a few minutes after the announcement due to emotions, then a run up thereafter. Look for a short covering rally lasting about six weeks.

SLB-15MIN


WHR-15MIN


SPX-DAILY IV


SPX-DAILY III


SPX-DAILY II


SPX-DAILY I


SPX-30MIN


SPY-15MIN
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