BALTIMORE (Stockpickr) -- With investors still grappling over the outcome of the latest Federal Reserve decision yesterday, we've got a lot of questions yet unanswered.
Questions like: "What flavor was Ben Bernanke's retirement cake?" (He sort of strikes me as a vanilla guy.) Or: "Did the Fed Governors chip in to buy him a nice watch?" (Probably not.)
Those are the questions worth asking in the wake of the Fed decision, because the decision to cut QE spending to $65 billion a month was about as shocking as discovering that MTV doesn't play music videos anymore. Not very. If the Fed backpedaled on the taper, it would send a pretty jarring signal to Mr. Market: This recovery is no where near as robust as we thought it was.
Likewise, the recent correction in the S&P 500 hasn't exactly been an epiphany either. Or it shouldn't have been. Want to position yourself on the right side of this leg down? Then it makes sense to think like a trader.
To do that, we're turning to the charts to take a closer look at the technical trading setups in five of Wall Street's biggest names.
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.