Major markets were up yesterday on higher, above average volume showing that institutions were accumulating stock. The Fed's announcement was taken as bullish for the markets overall, though bonds and gold seemed unconvinced.
As expected, the Fed raised its target rate by a quarter point to a range of 0.75% to 1%, and said it continues to expect gradual rate hikes over the next few years until the federal funds rate hits 3%. The Fed stuck to its projection for three hikes this year, relieving the concerns of investors who feared that the central bank may lay the groundwork for four.
The Fed said “the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace” and that inflation is “close” to the Fed’s 2% target.
Today's economic reports came in roughly on track with estimates.
Focus List Review
AMZN is showing extremely tight action on its weekly chart for the past four weeks. This would seem to imply that a move higher is imminent, and the stock is in a low-risk entry point here right at its prior February base breakout point.
BABA found support at its 20-dema. It has been a more effective approach to buy BABA on pullbacks into support rather than chasing strength such as we saw on Monday when the stock posted a pocket pivot that immediately failed.
FB posted a continuation pocket pivot along its 10-day moving average.
JD is holding tight along its 10-dma as volume dries up sharply, putting it in a lower-risk entry position here.
NFLX posted its second five-day pocket pivot over the past three days on a breakout attempt to all-time closing highs yesterday.
NTES closed ten cents below its 20-dema, putting it in a compromised position. It is still above the 278.80 intraday low of its February buyable gap-up move, and this would serve as a maximum downside selling guide.
QTNA is meeting up with its 10-dma as volume came in at -51% below average yesterday, well into "voodoo" volume levels.
SQ is holding in a tight flag formation since its February buyable gap-up and is sitting right on top of its 10-dma, putting it in a lower-risk entry position using the 16.32 intraday low of the BGU day as a maximum selling guide.
ZION weakened yesterday along with other financials following the Fed policy announcement as financials appear unconvinced that the Fed is embarking on a sustained series of rate hikes going forward. The stock is holding right at its 50-dma, and a confirmed violation of the line would constitute a sell signal.