Inside Day Ahead Of FOMC, QE4 And Emini Rollover
December 10, 2012 at 4:13 PM 
Inside Day | FOMC - QE4 | Emini Rollover
Inside Day
Based on Friday's 3 minute miracle, the S&P Emini Futures ($ES) had an inside day Monday, while the Dow Emini ($YM) put in a higher high and the Nasdaq Emini ($NQ) put in a lower low.
S&P500 Emini Futures - Inside Day
What is an inside a day? To learn more read Trading the Inside Day.
FOMC = QE4
While not exactly E=mc2, this equation may enjoy the same historical longevity, if for slightly different reasons. FOMC, or Fed Day as it is often called, was once upon a time, a really big day in the world of trading. When the interest rate decision was unveiled, the ensuing volatility was a beauty to behold. For the last few years the Fed has only had 1/2 of a bullet in the interest rate gun so the fireworks are muted at best. To learn more read Trading the FOMC.
This announcement is a bit different. It's not so much what the Fed will say, but what they may not say. QE1 was announced with much fanfare. Even more so, QE2 was a highly anticipated event. As the world drooled over the possibility of QE3, Helicopter Ben surprised to the upside by announcing QEinfinity. Now what could possibly top that?
Nothing. If the Fed says or does nothing, it's over. Operation Twist will expire at years end and the Fed will continue buying $40B of long term notes every month - FOREVER. Isn't that what QEi was all about? Far from it. QEi was merely setting up the mark (you and I) for the long con. As long as Operation Twist is in effect, the balance sheet actually gets balanced. With the Twist over, when the Fed buys $45 Large in Long Term Securities each month, they no longer have any short term notes to sell and neuter the maneuver.
In plain english, this means a doubling of the expansion rate of the Fed’s balance sheet. So while everyone else is listening intently on Wednesday to what the Fed has to say, I want you to listen to what he doesn't say. QEi is already underway. Twist is set to expire. If no one says anything, or does anything, QE4 slips silently from her berth on January 1st, runs silent, runs deep, and the American Sheeple begin their final voyage to a painful and most certain, watery grave. Bon-Voyage...
You are witness to the grandest Ponzi Scheme in the history of man.
Emini Rollover
Emini Futures Contracts expire on the third Friday of March (H), June (M), September (U) and December (Z). Rollover days are 8 days before expiration on the second Thursday of each of these months. This week contains the second Thursday of December. No cause for alarm. We will walk you through the process both in the Live Trading Room and also on the Live Daily Radio Broadcast. In the meantime, you can learn more by reading this - Trading Rollover Day.
Soybean Tweet
Consider being short ZSF3 below 1468. If triggered look for initial move of 5-6 cents. $ZS_F $ZS #soybeans
— DeWayne Reeves (@CFRN) December 9, 2012
Soybean Tweet - 15 Cent Drop
As opportunities unfold we'll keep you posted.
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fomc, inside day, qe4, rollover day 
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