Top Setups for Fed Day

Today's price action was more consistent with what you would expect ahead of a potentially "big" Fed day: the indices chopped around mostly sideways, weak sectors remained weak (oil, energy), and leading sectors (biotech) continued to grind higher.

It's obviously impossible to predict what the market will do tomorrow especially how it will close after the Fed.

It's safe to say, however, that we will see a choppy, directionless market after the first 45 minutes and then a lot of fireworks and whipsaws between 2 and 3.

Here are the five setups I will be watching tomorrow:

ALXN - Was on my watchlist last night and it indeed had a bounce through 180 and the 20/50dmas, expecting continuation toward 190

AYI - Narrow sideways consolidation right above 160 and the 20dma, could get interesting through 162-163

BABA - There is a lot of hand-wringing out there about lockup expiration, but the price action is saying it may have put in a bottom and now may be getting ready for a move toward 90

BLOX - Fairly long grind off the bottom and it does seem somewhat extended here, but it may have another push through 25 left in it

CELG - Profiled it earlier this week as a possible short, but given the overall biotech strength, it's reclaimed the 20/50dmas and the 120 level and may now be ready for a move toward 125

Posted to Tactical Alpha on Mar 17, 2015 — 8:03 PM

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