The next Federal Open Market Committee (FOMC) meeting is scheduled for Sept. 21, at 9 pm Moscow time.
Studies of US stocks and indices, oil and gas, precious metals and US Dollar price movement before FOMC meetings reveal the benefit of FOMC “drift” effect predictions.
It showed that US indices (S&P 500 and DJIA), most of considered US stocks, oil (Brent, WTI), gas and metals (especially silver) are prone to grow 24 hours before the Federal Open Market Committee (FOMC) meetings. Moreover, stronger growth of US stocks and indices is observed 36 hours before FOMC meetings. The dollar, on the contrary, the US is declining on the eve of meetings.
On June 14-15 and July 26-27 this year, the effect worked out as the DJIA index and silver saw a rise.
The trading instruments may be the following:
* the S&P 500 and DJIA indices,
* stocks of the U.S. companies that have shown the highest average profit per trade, total profitability and acceptable drawdown of no more than 20%, such as Apple, American Express, Visa and JP Morgan,
* WTI Crude Oil and natural gas,
* silver,
* the EURUSD, GBPUSD, and USDCHF pairs.
Today we will focus on WTI Crude Oil.
Currently, it is trading at the January price level, which is around 88.
According to OPEC forecast, oil demand will increase in 2022-2023, which means that the price is likely to grow.
So, possible entry-exit options:
1. Buy the WTI on September 20 at 9:00 am Moscow time.
Close the deal:
* Take Profit 1 = 91, Take Profit 2 = 95, Take Profit 3 = 100.
* Or market exit on September 21 at 8:59 pm Moscow time.
* Or market exit on September 22 at 4:59 am Moscow time.
Place the Stop Loss order below the minimum of the previous trading day, which is Sept. 20th.
2. Buy/top up the WTI on September 20 at 9:00 pm Moscow time.
Close the deal or a part of it:
* Take Profit 1 = 91, Take Profit 2 = 95, Take Profit 3 = 100.
* Or market exit on September 21 at 20:59 pm Moscow time.
* Or market exit on September 22 at 04:59 am Moscow time.
Place the Stop Loss order below the minimum of the previous trading day, which is Sept. 20th.
Keep in mind the spread and money management rules!
Warning!
Trading on financial markets involves a high level of risk and may lead to the loss of investment capital. The MarketCheese team is not responsible for the possible loss of your investment funds.
This content is for informational purposes only and is not intended to be investing advice.
