The Economic calendar is showing events expected strongest impacts on markets volatility.

IMPORTANT EVENTS

Real Time Economic Calendar provided by Investing.com.

Jackson Hole

Once a year since 1978, the US Federal Reserve Bank of Kansas City has sponsored a 2 days symposium on an important economic issue facing the U.S. and world economies. This is hosted in late August in beautiful Jackson Hole, Wyoming. To learn more about the location of the annual symposium, watch Bloomberg TV's video External Link"Inside the Central Banking Hangouts of Jackson Hole."

Here is how markets behave through the meetings. Link to the meetings here.

The Friday Aug. 27. 2021 Powell speach is here.

Nasdaq100 vs Gold Jackson Hole

The developments of the Nasdaq100 index is here 'head to head' with the price of Gold. The graph show that Gold outperforms the Nasdaq100 index by alot. All toghether, Nasdaq100 shows + 1.8%, and Gold shows + 20.3%.

The duration for the period selected is from the start of the event to markets close 3 calendar days after the last day of the event. For 2021, this means entering the position Thursday 26th of August and exiting the position Tuesday the 31st. of August.

Remember that past performance is never any guarantee of how markets will behave in the future. Read Disclaimer.

 

 

FOMC MEETINGS

Playing the Federal Reserve meetings.

8 times à year, the US Federal Reserve (Central Bank, the FED) has its ‘regular‘ meetings to address the state of the US economy and its interest rates policy.

In conjuction to a FED meeting, there are great price fluctuations in the financial markets as shown through the charts below. These variations are extra ordinary trading opportunities intraday and very short term. The cause of a certain price move is extremely difficult to foresee or "know" in advance. Market behaviour statistics may lead traders to 'a right path' to find potential profits from certain patterns. Remember that market participants always trade price to profit and nothing else.

Gold and the Nasdaq100 index are great examples of how price movements evolve through important FED meetings.

Below is Gold‘s behavior over 3 meetings (August, September, and November of 2018). The chart displays the period from ‘just before the US open the day prior to the FED meeting to just after the European opening bell two days after the meeting’. The price of Gold tanks USD 55 over the three meetings. The interesting aspect is to observe how similar the trading patterns are at all 3 events.

FED GOLD FALL 2018

 

Below is how the Nasdaq100 index behavior acts over the same 3 meetings (August, September, and November of 2018).

The chart displays the period from ‘just before the US open the day prior to the FED meeting to just after the European opening bell two days post the meeting’. The Nasdaq100 gains 200 points over the 3 meetings.

FED NASDAQ100 FALL 2018

In conjuction to price movements at these type of events, it is essential for short term trades to be prepeared with a suitable stop loss. If not great wins, a respectable stop-loss will minimize losses.

 

Here is a link to FED news provided by FX Street.

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