Our friends from Nanex sent us this chart of the breadth of the stacked bids and offers heading into today’s FOMC announcement. Note the pinch on the size chart (2nd chart line) and how the upper chart “cools” down from reds to greens and blues into the announcement. That is traders pulling orders, the bid/ask lines get dangerously thin during these announcements, so if you leave in your stops, you are in a small pool, with a big wave coming.
Always use stops, but during announcements, you also need to use some discretion.
