BALTIMORE ( Stockpickr) -- It finally happened. The Fed announced yesterday that it would only be spending $75 billion in stimulus each month, a move that the market reacted to with surprising enthusiasm. The S&P 500 ended the day up more than 1.66% after spending most of the session underwater.
Of course, the Fed's decision to taper wasn't exactly a surprise. The data supported easing off on the throttle a little. And anyway, Bernanke & Co. left plenty of "outs" to resume full-blown QE3 right as the Senate gets ready to vote on letting Janet Yellen take the big desk.
So maybe the market's reaction yesterday wasn't much of a surprise either.
But it is creating some big opportunities in some of Wall Street's biggest names. That's why we're taking a technical look at five post-taper trades to take this week.
If you're new to technical analysis, here's the executive summary.
Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time.
Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five high-volume stocks to trade this week.