{"id":8305,"date":"2010-11-10T11:24:12","date_gmt":"2010-11-10T16:24:12","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=8305"},"modified":"2021-05-06T14:49:54","modified_gmt":"2021-05-06T18:49:54","slug":"traders-ask-flat-b4-macro-events","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/traders-ask-flat-b4-macro-events","title":{"rendered":"Traders Ask: Flat B4 Macro Events?"},"content":{"rendered":"

Question:
\nLast week I went flat to cash in anticipation of the election, FOMC, and monthly jobs report. What a bad week not to be\u00a0long. Do you consider broad, macro events like the FOMC, monthly jobs reports, Chicago PMI, consumer sentiment numbers etc. etc. in deciding whether to buy, hold, or sell positions? Do you ignore these macro events and rely strictly on trends and charts to guide your trading decisions?
\nThanks for your thoughts and insight.<\/p>\n

Bella Responds<\/strong><\/p>\n

We trade mostly intraday so often we get flat right before a macro announcement. \u00a0If we are long an oil stock and Crude Inventories is about to hit, then we are generally flat.<\/p>\n

Why? \u00a0Because we cannot define our risk\/reward. \u00a0We do not know what will be announced. \u00a0We do not know how much the market will react to this news. \u00a0If we started a position in RIG, with no news about to hit, say long 68.25 with a stop below the whole, and an upside through 69, then we have our risk controlled. \u00a0If we are in this position and a funny Crude Inventories number hits we may not be able to exit till 66. \u00a0Here we would be in a trade where we are not controlling our risk.<\/p>\n

But say you are making a longer term trade in RIG. \u00a0Say you are long above 60 because you are seeing data that oil will be much more expensive by the end of 2011. \u00a0You see above 60 technically as very significant on your 6 months charts. \u00a0Fundamentally there is a catalyst that inspires your long. \u00a0Well now in this trade a Fed announcement, the Jobs number, Crude Inventories announced on one day may allow you still to control your risk.<\/p>\n

The question is: will this announcement allow you to control your risk in your trades?<\/p>\n

Mike Bellafiore<\/p>\n

Author, One Good Trade <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Question: Last week I went flat to cash in anticipation of the election, FOMC, and monthly jobs report. What a bad week not to be\u00a0long. Do you consider broad, macro events like the FOMC, monthly jobs reports, Chicago PMI, consumer sentiment numbers etc. etc. in deciding whether to buy, hold, or sell positions? Do you ignore these macro events and … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,908],"tags":[4674,1193,653,1354,1349],"class_list":["post-8305","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","category-traders-ask","tag-one-good-trade","tag-trader-education","tag-trader-training","tag-trading-coach","tag-trading-mentor","no-post-thumbnail"],"yoast_head":"\nTraders Ask: Flat B4 Macro Events? | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/traders-ask-flat-b4-macro-events\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Traders Ask: Flat B4 Macro Events? | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Question: Last week I went flat to cash in anticipation of the election, FOMC, and monthly jobs report. 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