Hey Guys,
Yesterday after the Fed's press release, the market shot upward more than 100 points. Then this morning it's come back down about 75 points. The market is all over the place.
The way the market reacted to the Fed news yesterday was interesting. The Fed announced that it is raising rates by half a point, which is the most substantial raise since 2000. In the recent past the market has gotten spooked by talk of increased rates, but yesterday the market reacted with jubilation. I'm not sure that many of us would have expected that.
And at times like that, I feel thankful that my trading approach doesn't involve trying to predict how the market will react to news or events. It's just so complex. There are so many players in the market and so many pieces of information affecting their decisions.
Instead of wading through all that analysis each time there is a major event, instead I simply stick to my back-tested trading strategy. It's based on historical tendencies and odds, so there are no guessing games involved at times like this. I just stick to the plan of the trading strategy.
I haven't made any new trades today. The only trading activity coming up is that I'm going to be closing a handful of options positions at the end of trading today. I had a couple of positions reach profit targets yesterday when the market went up (AT&T options and VST stock).
I received a dividend for my position on LW overnight. Anyone who owned that stock as of the close yesterday and into the opening bell this morning will receive the dividend. No action is needed to get it. Most brokerages will automatically credit it to your account at some point in the coming weeks.
If you have any questions or feedback, I'd love to hear from you.