Trade the Fed: Seize Market Volatility June 18, 2025
Watching the Market Reaction to the Fed
When the Federal Reserve speaks, the markets move—and for savvy options traders, that means opportunity.
Fed days are prime territory for high-probability trades. The sharp, immediate price movements triggered by these announcements can offer explosive profit potential. Whether it’s a surprise rate cut, or hawkish language, markets respond swiftly—and options traders can be in position to capitalize.
We use advanced pattern recognition techniques—including MACD Divergence, Double Tops & Bottoms, and multi-timeframe analysis—to catch these moves as they unfold in real time.
April 2025 Fed Announcement: A Sudden Pivot
In April 2025, the Fed shocked markets with a sudden shift in tone, acknowledging that recent economic data suggests inflation is easing faster than expected. While rates remained unchanged, the dovish language triggered an immediate rally in equities.
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S&P 500 surged 2.9%
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NASDAQ jumped 3.5%
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VIX fell sharply—setting up prime put-buying opportunities on volatility ETFs like VXX and UVXY
These are the kinds of momentum-driven setups that options traders thrive on—especially when guided by the TriFusion strategy we teach.
Fed Day January 2024: Quantitative Easing ResumptionÂ
In January 2024, the Federal Reserve announced the resumption of quantitative easing (QE) measures, committing to purchasing $500 billion in government securities over the next six months.
This unexpected move was aimed at providing additional liquidity to the financial system and supporting economic growth. The market reaction was immediate.
The S&P 500 jumped by 3.5% on the day of the announcement, while the Dow Jones Industrial Average and NASDAQ Composite rose by 3.2% and 4.1%, respectively.
Fed Day May 2024: Hawkish Stance Despite Slowing Growth Â
In May 2024, the Federal Reserve's decision to maintain a hawkish stance despite evidence of slowing economic growth led to significant market turbulence.
The Fed signaled its intention to continue with rate hikes to combat still-elevated inflation, surprising many who had texpected a more dovish approach.
The S&P 500 dropped by 2.8% following the announcement.
Here's the setups we look for Â
While there's no guarantee we'll see the setups that we know yield the best returns, this is an opportunity to join the master divergent trader, Dale Wheatley for what may be a pivotal day.
VXX 5 minute chart at 2.45pm Â
The VXX had a clear upside divergence at 2:45pm EDT that led to every major market selloff!Â
SPY 5 minute chart at 2.45pm Â
The SPY pushed higher, the MACD was flat indicating a potential move down and confirming what we saw in the VXX.
SPY 485 Puts 10c to $2sÂ
Returns on IWM puts did the best but even the SPY did well. Here's the SPY 485 puts that expired January 31, 2024.Â
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Ready for the Next Fed Day?
Don’t miss the next opportunity to trade alongside Dale Wheatley during live market hours. Fed Days are unpredictable—but with the right tools, you don’t need to guess. You just need to recognize the setup.
➡️ Join our next live session and trade the market reaction in real time.