As mentioned in the recent market & trade idea updates, the days leading up to an important FOMC meeting are often marked by relatively muted but choppy, sideways trading ranges as most traders & investors are in “wait & see” mode. I typically refrain from entering new positions & suspend my stops on trades that still look promising as it has been my experience that there is an increase likelihood of false breakouts & stop raids in the choppy price action leading up to & immediately after an FOMC announcement.
With that being said, there are a few things that I’m watching today. CARA (Cara Therapeutics Inc) was mentioned in the trading room yesterday as breaking out above the 6.70 level. That breakout was confirmed with above average volume & so far today the stock is following through which helps confirm the breakout. If it weren’t for the upcoming FOMC announcement, CARA would like likely been added as an official trade idea & still might be later this week but for now, I just wanted to pass the trade idea along for those interested.