We have some typical pre-Fed decision action this morning.
The indices are drifting around in a very narrow range, breadth is almost dead even and there are few pockets of action. Market players are debating what the Fed is going to do and how the market is reacting but most of them are now just waiting for the news before they do anything further.
I'll be looking at some potential trades in gold miners such as Agnico Eagle Mines (AEM) and Kirkland Lake Gold (KL) on the Fed decision. A dovish Fed will weaken the dollar, which will weaken gold, and vice versa. I'll be looking to buy gold miners on weakness following the news.
Parsons Corp. (PSN) , which has been my stock of the week twice, is breaking out of a consolidation pattern this morning. This defensive play has government contracts in a variety of areas including cybersecurity. Initial price targets from analysts were tame but the company posted very good earnings on Tuesday morning and the market obviously thinks estimates and valuation, will rise.
I'm also eying bottom-fishing biotechnology name Biohaven Pharmaceutical Holding (BHVN) . The company was cruising along nicely on takeover speculation but crushed hopes when it suddenly announced a secondary offering. That offering was priced this morning at $43 and the stock is now trading below that level. Management is being questioned for the way that they have handled recent events but analysts are still optimistic about the company's treatment for migraine headaches.
After things calm down following the Fed I'll be looking for more opportunities. We should see some big swings, which will create opportunities.
