Major averages finished flat to lower on mixed volume, closing near the top of their trading ranges. The FOMC voted unanimously to leave the fed funds target range unchanged at 0.75%-1.00%, as expected, and the policy statement provided no material new information. CME FedWatch says the odds of a hike in June stands at 71%. This would be the third hike in the face of slowing GDP thus could induce a correction of some magnitude, but instead of trying to guess when such a correction would occur, keep a close eye on the price/volume action of your stocks.
Focus List Review
CC reported earnings on Monday and traded in a wide range yesterday. The stock is currently holding at its 10-dma and 20-dema and should be watched for a breach of support at those two near-term moving averages.
FB reported earnings yesterday after the close and is pulling back only slightly in pre-open trade. Only a pullback down to the 10-dma would put this in a lower-risk entry position, so that should be watched for.
NFLX remains within buying range of its recent base breakout through the 148-149 price area.
NOW continues to hold tight since last week's BGU. Yesterday volume continued to decline as the stock tracks tight sideways within a four-day flag formation.
SNAP pulled into its 10-dma yesterday on the lightest daily volume in its entire pattern. This puts it in a lower-risk entry position, but keep in mind earnings are expected next Wednesday.
SQ reported earnings yesterday after the close and is gapping up through the 19 price level. This should be watched for a possible BGU once the stock opens up.
TSLA reported earnings yesterday and reported a wide-than-expected loss. The stock is trading down in pre-open trade less than 2% from yesterday's close and is holding above the key $300 price level. If the pullback can hold the 300 level, it may simply put the stock in a lower-risk entry position using the 300 level as a tight selling guide.