How to Pick Apart a Fed Announcement for Profit

The Federal Open Market Committee (FOMC or The Fed) meets eight times a year. At the end of these two-day affairs, precisely at 2 p.m. the “Statement” is read, preceded by a one sentence report on whether or not intersest rates (the Fed Funds Rate) is changed.

Unless a surprise happens with the interest rate announcement, traders and analysts look to the language contained in the Fed’s page and a half statement for indications of the august body’s thoughts on the health of the economy, and what they might be doing with monetary policy in the future.

It’s such a popular thing to do, that many financial sites post marked up documents comparing the previous and current statements word-by-word.

I believe it would be useful for us to see why the global markets have traded up since the Fed released their most current statement.

Let’s take a quick paragraph-by paragraph review of the document and translate what the Fed-speak really means


Keep Your Eyes Glued to These Levels…

Greetings from my beautiful hometown of Radford, Virginia! I’m back in town visiting some family for the weekend, but I wanted to take a quick break from that to bring you a market update.

This past trading week took a much-needed turn back to positive gains. In today’s market update video, I’ll be taking a look at several of the reasons for the reversal of fortune on Wall Street this week. I’ll also delve into some technical analysis on where the market could be expected to go from here, including the next big “Eyeballs” event that many investors will be watching (if you’re unsure what I mean by “Eyeballs,” check out my article on the four things you need to read any stock chart by clicking here).