There's a big risk in the Federal Open Market Committee statement scheduled for Wednesday, M3 Capital President John Netto said on CNBC's "Fast Money."
"The biggest thing facing traders tomorrow is the possibility for misinterpretation," he said.
Netto noted that the Federal Reserve's economic statement and the summer economic projections were set for release at 2 p.m., and the FOMC statement was expected at 2:30 p.m.
"That simultaneous release about the size of the taper, and whether or not they're going to possibly lower the employment threshold, combined with their forecast of the Fed funds rate, unemployment and GDP are all going to play a factor in how the market reacts at 2 o'clock," he said.
"And I think the first reaction'll be that knee-jerk based on the size of the taper, but what's more important is how much the Fed emphasizes, at least how it pertains to equities, what they're going to do with the forward rate guidance."