FOMC Effect

For whatever reason, the initial reaction to Fed rate policy is "almost" always the wrong one and is reversed, it can be reversed that day, or within a few days.

If we get a negative reaction that takes us below SPY $112.75, I think the point will be moot. If the market rallies to new highs, you may want to hedge your portfolio. One of the people I advise in the market is heavily leveraged in almost exclusively market related shorts and against my advice, leveraged way too heavy so if we see a new closing high we will take 1/3 of the shorts and put them into 3x leveraged longs and wait out the FOMC effect for a few days-depending on market reaction.  This is for EXAMPLE ONLY

I'm not saying this is for you, this is a particular situation that is 100% market correlated and way too leveraged. I can advise, but I can't put the orders in so I don't have the ability to control risk as I would like to. So this is our option for dealing with it, please understand this is not a recommendation for you, you must decide what is right for you.

The main points are the Fed effect, the possibility of a decline that would make the Fed effect largely a moot point and thinking forward about risk management.

Right now the market has taken out another support level,I'm not sure how much more action we'll see ahead of the FOMC announcement.

Right now it looks like on an intraday chart, the SPY is forming a H&S top.