Nicholas Colas: Equity Prices and Dot Plot

nicholas colas: They found that equities have tended to rally into and through meetings of the Fed's rate-setting Federal Open Market Committee, according to Market Watch. Tuesday is Day 1 of the Fed Drift sequence, and in an evermore algorithmic world that's important to know, Colas wrote, referring to pattern-based trading programs. In a note, Nicholas Colas, co-founder of Data Trek Research, reminded clients of the phenomenon studied by New York Federal Reserve Bank. Read Here are 3 things to watch when the Fed unveils its latest dot plot The New York Fed researchers, using data running from 1994 to 2011, showed that equities rose, on average, the afternoon of the day before, and then more sharply on the morning of FOMC announcement days. Eastern, equity prices may have fluctuated depending on the details of the announcement, but, on balance, ended above their pre-announcement level and almost 50 basis points above where they opened the day before. After the announcement at 2 15 p.m. (news.financializer.com). As reported in the news.