There is nothing wrong with sitting around and waiting for the Fed today. I've taken my small SPDR S&P 500 ETF (SPY) trade from yesterday, but other than a few dips and darts here and there this morning, I'm not doing very much at all. And I really don't have any problem with that approach.
Fed days have been tough to trade. They've been brutal to me in the past, so I've avoided them for years now. I took one of my worst beatings a little more than six years ago on a Fed day. I had only traded around them sparingly, and thought I had a pretty good feel. The issue was, I was over confident in my read, too big in my position and too skittish on the whipsaws.
One name I really like here for the swing trade ideal is Abbott Laboratories (ABT). This isn't an overly aggressive name, so it is one of the few names I would consider owning even with the Fed today, because I view it as longer term. The stock does offer a nice 2% dividend, along with a price breakout today. What do those have in common? Absolutely nothing, but a small dividend never hurts when considering a longer term swing trade. As far as the price breakout goes, we have some triggers and some potential. Price has broken out higher. That is first and foremost for me.
Furthermore, I added in a trend indicator via the Vortex indicator, which shows a strong trend here, and we have a bullish crossover in the PMO. I would like to see the volume pick up a bit, along with the 10-day moving average, but today should do a lot to help both of those if we hold this push. It looks worth the long side here.
Xilinx (XLNX) is much more of the higher-risk, higher-reward play. Another 2%+ yield here, actually coming in closer to 3%, but the stock has struggled much more than ABT. What we have here is the potential gap fill. There is a price breakout today from the September consolidation and all the secondary indicators are now bullish. It took a bit for price to come around as the PMO and KST already were bullish, along with a strong trend shown by the Vortex Indicator. Now we have the move higher in the MFI, along with a 10-day moving average that should turn higher as well. The stop here is around $42, so a trader must be willing to give it some room.