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5 Breakout Trades to Take Ahead of the Fed

Stocks in this article: MMM HD X LUV AAON

BALTIMORE ( Stockpickr) -- The Federal Reserve is ruling the market's news cycle this week, between speculation over who will take Ben Bernanke's desk in Washington and the possibility that the Fed will announce its plans to taper.

>>5 Rocket Stocks to Buy as Mr. Market Climbs

Larry Summers' withdrawal from the process on Sunday gives a seriously dovish bent to where the Fed is likely to end up. In other words, the fire hose of quantitative easy that investors have been drinking from for the last five years isn't likely to get shut off anytime soon, even if it does get turned down to a strong spray.

New frontrunner Janet Yellen has been less eager to pump the brakes -- and the market likes that.

Let's face it: We can expect to see a lot of doublespeak and ambiguity in the Fed's words this week. I suspect that the Fed is focused less on tapering QE than it is on tapering investors' expectations. Plausible deniability is going to be the biggest tool in their arsenal, just like it was back in June.

>>5 REITs to Call Bernanke's Bluff

Meanwhile, that doesn't mean that investors should be sitting on their hands -- we're seeing some attractive trading opportunities popping up in individual names right now. Here's a technical look at five stock trades to take this week.

For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

>>5 Hated Earnings Stocks You Should Love

So without further ado, let's take a look at five technical setups worth trading now.

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