FOMC Day. But Does It Matter?

Ever since I started this Albatross of a blog, people have been admonishing to not trade "Opex days" and to stay away from earnings stocks. I've always thought this somewhat odd and also, a touch gay.

However, if there is one day I've stayed away from consistently in my trading career, it has been the FOMC day. You can almost always expect light volume until the 2:15 announcement, and then, when the announcement is made, you can expect to get "ass-raped" immediately.

In fact, I can almost guarantee an "ass-rape" candle formation at some point between 2:15 and 2:30.

Today feels different though. After a 900 point rip in the Dow yesterday, it's clear that the market is working off of mechanics right now and nothing else. Earnings don't matter, and I doubt the FOMC matters much either. You've either been forced to puke up your losing positions, or not, and the market is moving accordingly.

That said, I still expect light volume early, but I think the late afternoon will be lots of fun.