Market players don't seem a bit worried about the FOMC decision due this afternoon at 2 p.m. ET, but why should they be? The market loves to love the Fed and there isn't any reason that it will turn out differently today. A hawkish tone to the policy statement is already baked in and it will be no surprise if they set the stage for a hike in December.
The pattern has been that poor economic news has undermined Fed efforts at hikes. Who knows what will happen between now and the December meeting. There isn't any reason to worry about it, particularly because of the inability of the Fed to forecast properly.
Breadth is running better than 3-to-1 positive and indices are holding on to nice gains. There simply isn't any fear of a "sell the news" reaction to the Fed. Many bulls are hoping for some selling on the Fed because they want to buy the dip but that is so anticipated that it barely happens.
I've recently cut my long inventory by quite a bit as a strategic move but I'm still looking for strategic buys. I continue to hold longer-term favorites such as Energy Recovery (ERII) , TPI Composites (TPIC) , Global Blood (GBT) and Aratana (PETX) .
I cut back Airgain (AIRG) to a token tracking position. That has been a great trade but taking gains is a very important part of the game.
A new position I added this morning is Etsy (ETSY) . The stock has an upgrade and a $17 target this morning but it's the chart that I like. I'll be looking for additional entries as it develops.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider AIRG and PETX to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.