{"id":16566,"date":"2024-09-16T17:00:39","date_gmt":"2024-09-16T21:00:39","guid":{"rendered":"https:\/\/mtatradeoftheday.com\/?p=16566"},"modified":"2024-09-16T14:20:09","modified_gmt":"2024-09-16T18:20:09","slug":"exactly-how-to-trade-the-fed-this-wednesday","status":"publish","type":"post","link":"https:\/\/mtatradeoftheday.com\/exactly-how-to-trade-the-fed-this-wednesday\/","title":{"rendered":"Exactly How to Trade the Fed This Wednesday"},"content":{"rendered":"
This week, all eyes are pointed squarely on the Fed…<\/p>\n
And for good reason.<\/p>\n
On Wednesday afternoon, the Federal Open Market committee will announce their next policy decision.<\/p>\n
What we Know<\/strong>: They will<\/em> cut rates for the first time in 4 years.<\/p>\n What we Don’t Know:<\/strong> Going into the rate cut decision – it’s a virtual coin-flip scenario as to the magnitude<\/em> of the cut.<\/p>\n In my view, this 50\/50 scenario could sets us up for a big market move in either direction.<\/p>\n You see, no matter if the Fed cuts 25 basis points – or if they cut a larger 50-basis points – that means that half of Wall Street will be upset as to the decision.<\/p>\n You’ve heard all the bickering before:<\/p>\n They waited too long…<\/em><\/p>\n They didn’t act decisively enough…<\/em><\/p>\n They’re behind the curve again…<\/em><\/p>\n I’m sure there will be other arguments as well – but the important point is this…<\/p>\n The aftermath of the Fed’s decision this week could be the newest rigger catalyst for added volatility in the market.<\/em><\/p>\n No matter which side of the argument you are on, the simple fact remains: The Fed is in a no-win situation.<\/p>\n And this alone could prove to be the trigger for a larger than normal directional move.<\/p>\n <\/p>\n For most traders, this added monetary-policy volatility proves to be a very tricky situation to navigate. But for Catalyst Cashouts traders (like many of us), it sets up nicely for a SPY ODTE strangle trade.<\/p>\n Tomorrow, I’ll be issuing this exact trade in our LIVE Catalyst Cashouts<\/a> session – and you’re invited to join us.<\/p>\nYOUR ACTION PLAN<\/strong><\/h2>\n