Fed Watch/Stripes
Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Stocks/Sectors and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.
At the time this is being published, the S&P Globex
futures are trading 1.50 points higher and the bond market is unchanged.
On Tuesday, the Nasdaq rallied above Monday’s high (a),
suggesting that it might just take another stab at getting out of this
consolidation. However, early on, it reversed and sold off. This action
has it closing on its low (b) as longs bailed in front of the Fed meeting. The
market did hold above Monday’s lows but just barely.
It’s likely that trading Wednesday will be difficult as
everyone will be on Fed watch. The bulls say if they raise rates it’ll be
good for the market and if they remain unchanged it’ll be good for the markets.
No surprise here. I suppose a zebra doesn’t change (or is allowed to change) his
stripes.
Looking to potential setups, Micron Technologies
(
MU |
Quote |
Chart |
News |
PowerRating),
mentioned Monday night and on the Pullbacks
Off Highs List, still look like it has the potential to break out of aÂ
pennant formation.
Continuing on the
pullback theme, WatchGuard Technologies
(
WGRD |
Quote |
Chart |
News |
PowerRating), also on the Pullbacks
Off Highs List, looks like it has the potential to breakout of a
pennant/flag formation. Just wait for confirmation to the upside as it did close
poorly on Tuesday.
For you breakout players, Triton Energy
(
OIL |
Quote |
Chart |
News |
PowerRating), on the New
60-day Highs On Double-Volume List, broke to new highs on an expansion of
range and volume out of a high level consolidation.Â
On the short side, Computer Sciences Corp.
(
CSC |
Quote |
Chart |
News |
PowerRating),
mentioned Monday night and on the Pullbacks
From Lows List, still looks vulnerable.
Best of luck with your trading on
Wednesday!
P.S. Reminder: Protective stops on every trade!
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