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DaytradeTeam Buzzzzzzz: Fed Factor Stalls Market
By Andy Swan | Published  03/28/2006 | Stocks | Unrated
DaytradeTeam Buzzzzzzz: Fed Factor Stalls Market

The Fed Factor stalled the market once again yesterday. As predicted, the market moved very little due to uncertainty pertaining to the Fedââ,¬â"¢s comments regarding future interest rate hikes. Economist surveys and interest rate futures show 100% certainty that the Fed will increase the Fed Funds Rate from 4.5% to 4.75% in todayââ,¬â"¢s meeting. The real question isââ,¬Â¦Will the Fed give some insight reflecting its future plans for the Fed Funds Rate? Expect the Dow, S&P, and NASDAQ to be very calm until this news is released.

NMT Medical Inc. (Nasdaq: NMTI) gapped down severely March 13 on news that it missed its trial goal for a heart procedure that relieves migraine pain. The stock was on a nice up trend prior to the down side gap. NMTI has recently crept back into the gap on a new up trend, showing potential to fill it completely and continue to rise. NMTI is testing its new up trend line at the 16.85 level. Our Classic Swing Trading System is keeping an eye on NMTI today, looking for potential to profit off the fill of the downside gap.

Oracle Corporation (Nasdaq: ORCL) has been in consolidation mode for the past week. This stock was on a steep uptrend prior to the continuation pattern, and is likely taking a break before a big move to the upside or the downside. A break through support at 13.75, or resistance at 13.90, on heavy volume will indicate which direction ORCL is headed. Our Small Cap Swing Trading system will watch ORCL today and alert members when we are convinced a direction in price has been established.

A look at Google Inc.ââ,¬â"¢s (Nasdaq: GOOG) 5 day chart shows a breakthrough of a significant resistance level at 370.00 since it gapped up on news of being added to the S&P index. Zoom out to the 20 day and you will notice there is not much resisitance until the 380 level. Our Swing Trading systems will analyze GOOG closely this morning, and alert members with an entry, stop, and price target if we see a buying opportunity.

Todayââ,¬â"¢s market will not show much action until the Fed relieves some of the interest rate uncertaininty.

Andy Swan is co-founder and head trader for DaytradeTeam.com.  To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.