Stay on the Prowl

The easiest thing to do for most market players at this particular moment in time seems to be to wait on the FOMC fireworks later today. Beginning at 2pm EST, we will get the Fed's interest rate decision, accompanying statement, Fed members' forecasts, and Chair Powell's press conference, to boot. Indeed, those are all known, defined risk events.

And the issues are two-fold: 1) Does the Fed do and/or say anything which truly surprises or disappoints, even shocks market? 2) Does the market simply continue to rally, anyway, as a means of inflicting a pain trade higher given the recent slew of sentiment and allocation surveys which shows an imminent melt-up may catch the majority out of position? 

These are all interesting issues which provide intellectual fodder leading up to the decision and events after 2pm. In the meantime, though, we still want to plug away and look for clues the market is actually leaving behind (or pointing ahead) with respect to specific stocks and sectors. 

ShockWave Medical, a recent IPO from early-May in the medical device field, may not garner as much hype as some other recent IPOs, but gauging the daily chart, updated below, we ought to keep an eye on it. Note the SWAV tight basing action after its initial post-IPO rally.

This is yet another example of relative strength during the shaky May overall action in the tape, beyond the video we did both here and discussed with Members last evening. 

Should the FOMC fireworks prove to be more noise than substance, or actually propel stocks higher yet, SWAV becomes an intriguing long to play for another leg higher as healthcare and recent IPOs both largely enjoy recent momentum.