Fed Day > Does The Party Keep Going?

Good morning folks
Lets be honest > Earnings from most of the big name companies that have reported so far have been very disappointing. Whats worse is guidance isn't much better. A very common theme of meeting earnings but missing on top line revenue is fairly consistent across the board. This is not healthy growth and you can see that with the amount of companies that are announcing layoffs and capital expenditure cutbacks and yet the markets have continued to shrug off the lack luster performance. 

There are several sectors that continue to impress like the IWM. Small and mid caps names continue to show strength. The IBB looks like its working on a potential break higher although I did notice some weakness in several names during my scans last night. Gold, related miners and ETF's continue to hold up extremely well as a result of the dollar weakness. The big surprise is the continued strength of oil and energy related names. 

In last weeks sector watch video we talked about being cautious in the tech and semiconductor space and after last nights disappointing earnings. I would suggest that remains the case unless you are looking for either quick bounce scalps or short biased opportunities.

If the dovish tone that the Fed had in the last meeting flows over into today's statement then we may just continue moving higher regardless of what earnings are signalling. The dollar will likely continue to weaken, gold and miners will continue to benefit. Home builders could catch a boost and financials could weaken. 

If the statement is more hawkish then the dollar could strengthen, financials could get a boost and gold and the miners could see some weakness. 

We could have a somewhat choppy morning as we head into the Fed announcement. If you don't feel as though you have an edge there is no reason to force any trades. Sitting on the side lines is nothing to be ashamed of. Be careful of jumping in too quickly after the Fed announcement and over committing. The first reaction is typically a head fake so let the market settle a bit or at the very least make sure you are sized appropriately if you get involved immediately after the announcement.

Oil and energy names continue to impress and like we talked about this weekend I am watching the solar sector for a potential sympathy move up if oil can maintain the strength it has had recently. 

Cyber security also remains on my focus list after FTNT reported earnings and raised guidance last night. We talked about the sector on Sunday during the Ticker Tv session and it could finally be ready to break higher. Keep an eye on CIBR and HACK. 

Today's Markets 

In Asia, Japan -0.4% to 17290. Hong Kong -0.4% to 21331. China -0.4% to 9608. India+0.2% to 26052.
In Europe, at midday, London -0.3%. Paris +0.1%. Frankfurt +0.3%.
Futures at 6:20, Dow -0.25%. S&P -0.3%. Nasdaq -1.1%. Crude +1.9% to $44.87. Gold+0.3% to $1246.75.
Ten-year Treasury Yield -0.025 bps to 1.91.

Today's Economic Calendar

7:00 MBA Mortgage Applications
8:30 International trade in goods
10:00 Pending Home Sales
10:30 EIA Petroleum Inventories
2:00 PM FOMC Announcement

ETF's on my Radar 

Volatility & SPY                                     OIL                                                  Biotech
UVXY XIV VXX TVIX SPXS SPXL      UWTI DWTI GUSH DRIP         LABD IBB LABU      

 Gold                                SILVER         Dollar                                Financials

GLD NUGT JNUG             USLV          UUP                                 FAS XLF FAZ

Minerals and Miners                   Utilities           RETAIL                    Transportation              

XME GDX GDXJ                      XLU             XRT                         IYT  XTN

DUST JDST  

Agriculture 

DBA, DAG

Stocks on my Radar Premarket 

BSX   Earnings beat flirting with a 20 roll and all time highs more of a swing super thick stock 

TPH    Earnings beat hot looking daily but could be impacted by the Fed guidance was conservative as well 

OASM  Super tiny float with some pr this morning could get some action likely going to need to raise cash soon

SDRL potential 4 roll  nice pennant on the daily 

ORIG 2 roll potential continuation 

UNXL  PR active premarket small floater big short 

RESN thin floater getting some action off pr Lacking some specifics though and likely going to need to raise cash soon

CHK active premarket thick stock big short position 

Stocks discussed in this week Ticker TV video are below the video replay is in the Ticker Tv section the right of the page.