The early action was a bit nervous and breadth is still slightly negative, but the market has inched into the green as expectations for the Fed announcement builds. Gold is showing a little relative strength, which is a sign that the market expects QE3 today. Banks and homebuilders are a little soft, but mostly it is very mixed action.
Stock-picking on Fed day is always a bit frustrating, as it can be all for naught the moment the news hits and everything is jerked around. Nonetheless, I'm looking at a few technical setups that I like. For example, ChipMOS Technologies (IMOS) has fantastic numbers and is supposed to grow earnings 123% to $2.34 in 2013. The stock has formed a little cup over the past month and is testing resistance. Volume is very light and the tech sector has been pressured by Intel (INTC), but with the solid numbers. The good chart has my interest.
Another one I'm looking at is Flotek (FTK), which provides chemicals for the oil industry, fracking in particular. The company has very solid numbers, also with growth of EPS around 50% and a trailing price-to-earnings ratio of just 16. It has been basing around the $12 area and is perking up on good volume.
I've mentioned Ellie Mae (ELLI) a number of times lately as a play on increased market activity. That should perform well if the Fed announces mortgage-bond buying today, which I think is very possible.
Be careful in front of the Fed. You can wipe out a good day in a minute if you are caught in the wrong names.