FED Decided To Hike

The FED has decided to hike the rate by a quarter of a percent, 0.25% today. The market has essentially pinned the FED into the hole it has dug for itself, and it is more like damn if you do and damn if you don't. The FED didn't have much of a choice but to raise even with the backdrop of an impending recession. Now the market will celebrate for a while until it realizes the potential ramification of the rate hike will have on the economy. For now, it's onward to 2016 and Santa rally time!

Here are some DOW stocks you might want to watch for possible year end move.

MSFT:

Look for potential breakout further into new high territory.

(click on the chart to enlarge)



INTC:

Could make a move to retest recent 52 week high if it breaks above the 35.41 level.




KO:

Another DOW stock with the possibility of retesting 52 week high. Look for a breakout from 43.85.




JPM:

Could be forming a bull flag. If it can break above 68, look for a possible move to recent 52 week high.




With the FED rate hike anxiety removed, the market could now turn its focus to the jolly season rally, Santa rally. As long as most market participants are looking for the market to rollover, the market will continue to rise. When the rally pushes the market back to new high territory, be attentive and listen careful for market message for possible direction change. Until then, trade defensively!