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Fed meeting notes and Fed President speech
November 2 @ 8:00 am - 5:00 pm
This Fed Meeting is widely expected to culminate in either a .25% or .5% rise in interest rates. Typically, going into the meeting, traders are extra jittery, and volatility tends to increase. The debate going into this one will be how much the interest rate rise will be, and the potential effects.
Often, traders hedge going into these meetings using inverse ETFs or ETNs, or even straddling SPY calls and puts.
Depending on what is “baked in” and what surprises the market on during the Presidents Speech, the market either sells off or recovers from a selloff before the notes are released. Often, the market over-reacts to the fed news, and then “over-corrects” the following few days. Many traders take this as an opportunity to position into stronger companies who might have experienced an overreaction prior to or during the fed announcement.