I'm Watching These 8 Stocks as We Await the Fed
We can't tell how the indexes will react, but we can take advantage of volatility.
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With the Fed interest rate decision looming, it is positioning day for traders. There is no way to know how the market will react to the news, but the likelihood is that volatility will increase and there will be quick swings.
I have no interest in trading indexes in this situation. What I want to do is to use the volatility to enter and exit trades in individual stocks. I’m most interested in finding some charts I like, taking initial positions, and then adding or selling some when the market reacts to the Fed.
For example, I’m looking at TeraWulf (WULF) , a data center play that has a relationship with Alphabet (GOOGL) . Of all the data center plays, it probably has the best-looking chart. I am increasing my position here and will look to make a further move on the Fed decision tomorrow. It has a strong 50-day moving average support, and I’ll be willing to add on either a pullback or a move over recent highs.
Some other names that I’ve discussed that I will have on my radar for a response to the Fed news are Nvidia (NVDA) , Solaris Energy (SEI) , Perpetua Resources (PPTA) , Harrow (HROW) , SharpLink (SBET) , Alto Neurosciences (ANRO), and Eos Energy (EOSE) .
I’m optimistic that a surge in volatility on the Fed's move will help to produce conditions favoring a Santa Claus rally, and I’m making sure that I’m ready to move should that occur. I don’t know what the indexes will do, but there are quite a few individual stocks that look attractive.
At the time of publication, DePorre was long WULF, NVDA, SEI, PPTA, HROW, SBET, ANRO, EOSE.
