Wednesday is a Fed day, and as usual we expect the volatility to pick up in the afternoon once the Fed's decision is released.

In keeping with our strategy, we do not avoid buying ahead of a Fed meeting or any other event (other than earnings), as we prefer to focus on the price and volume action on the chart. The idea is to prevent emotion from getting in the way of objective technical analysis (trade what we see, not what we think).

Yesterday, in The Wagner Daily newsletter, we established a new long position in iShares Home Construction ($ITB) on a pullback entry off support of the 20ema and 50ma. The buy entry was over the two-day high, which triggered on Tuesday with a slight pick-up in volume.

Bullish momentum is starting to build on the daily chart, after a few months of basing action. $ITB bottomed out at the rising 200-day MA and cleared the downtrend line of the base several weeks ago. After stalling shy of $25, the price action has pulled back into support:



Look for $ITB to hold above the 200-day MA at the very least. A breakdown below this level would suggest that the pattern needs more time to develop (or could be breaking down).

The 20-day EMA crossed back above the 50-day MA and the 50-day MA has flattened out, which are both positive signs.

We have one new swing trade setup on today's ETF watchlist, which is in iShares Euro Finacials ($EUFN). After a failed breakout attempt to new highs, the price action has pulled back in and undercut the 20ema and breakout pivot level just below $26. The past two days the price action has found support just above the rising 50-day MA, but has touched the 10-week MA on a weekly chart (which is not listed here).

With so much support in the area, look for $EUFN to hold ground here and eventually attempt to re-breakout:



Subscribers of our nightly swing trade report should see the "watchlist" section of today's issue for our exact entry, stop, and target prices

In the individual stock portfolio, we added one new position in $WB, which followed through nicely to the upside. We also have two new setups in $INXN and $ENPH.

$INXN is sort of like the $EUFN entry, a pullback after a false breakout. $INXN does have some decent EPS and revenue numbers quarter over quarter, but it doesn't have great liquidity, so the size is only 1/3. $ENPH is a potential breakout to new all-time highs on a breakout above the current range high. It does not have great liquidity or earnings, so its size should be around 1/4 or less.

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.