The Founder’s Group has taken a short position on a sell stop at 3902.50 in the Navigator Swing Trader Strategy on the Fed Announcement of a .75% rate increase. We have a slight gain at this writing, which allowed us to put our stop at 3895 – making it a risk-free trade if the market turns north instead of south.
But we need to give the position a lot of room in the volatility. We will lower stop with the price if it continues to fall while leaving as wide a birth as possible. The market could still rally north and trigger our stop on some short-covering and reverse to a buy signal.
Or, if we get stopped out, we may establish a short from an even higher level if the algo fails to flip to a buy signal as it records the latest data. That is how Fed days work, and those less experienced with volatility might want to wait to take a position until tomorrow.
The market does not usually settle in on Fed days until the hedge funds run all the stops above and below the pre-Fed announcement highs and lows.
Subscribers are getting instant updates – and they are coming fast. As mentioned last night, price is wobbling on a buy signal – but it hasn’t painted yet. The Navigator Algorithm incorporates the 5-day line and our proprietary Algo Trigger. No buy signal will paint without a close above these levels. The bias is short until the levels are decisively conquered.
I will have more to say later tonight.
A.F. Thornton