BE CAREFUL OF THE 2:00PM TO 3:00PM WHIPSAW

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Every six weeks, The FOMC minutes are released from the previous FOMC meeting. The minutes are an actual accounting of the meeting, with interest rate projections and commentary included. The Fed Minutes will be released today at 2:00pm.

There is a consistent trading pattern forming around the Fed Minutes release. The information is released, and then the markets go haywire, blowing out day trader stops, often swinging down over 1% from 2pm to 2:30pm then rallying to end the day positive. We are not saying this pattern will happen today, but we are confident in our assumption that 2pm to 3pm will be chaotic, and the pattern formed into 3pm will likely be the pattern that continues into the end of the day.

After the Fed Minutes are released, if there is no immediate change in future rates (if the Fed does not signal the slowing economy is a reason to hold off on raising rates) the prevailing downtrend in the market will likely continue. As borrowed money continues to get more expensive, mass devaluation of equities and bonds may occur. Any jump in the markets is an opportunity to lower equity exposure.

Day Traders: BE CAREFUL TODAY. YOUR STOPS WILL LIKELY BE BLOWN OUT DURING THIS 2PM TO 3PM HOUR.

Wait, who am I kidding? None of you apes use stops. So your positions will continue with an unrealized loss.