Wednesday's FOMC minutes release sparked a late-day rally in the stock market. If the rally continues into Thursday, this could be a great area to watch for trade setups in some of our favorite sectors.

Even with the market in a pivotal area, we need to stay quick on our feet as we've seen the market rapidly move in both directions this year. When it comes to stock picks, some interesting areas we have been watching include medical devices/healthcare, cannabis, travel, food, and more. Here are a few of the symbols we are tracking within these areas:

• Envista Holding Corporation (NVST) – Medical
• AdvisorShares Pure US Cannabis ETF (MSOS)
• Expedia Group (EXPE) – Travel
• Beyond Meat (BYND) – Food

The obvious difference between these stocks is that NVST and EXPE are both sitting at new highs after a very quick run. Additionally, both are some of the strongest stocks in their sectors. However, when it comes to watching for a trade setup, their recent highs make it tough to find a great risk-to-reward setup. Therefore, we can look for each to make pullback or consolidate before expecting another push higher.  

On the other hand, BYND and MSOS have been trending lower and now need to prove they can change direction. Currently, MSOS is over its 50-day moving average at $23.82. If it can hold this area along with clearing $25.00, MSOS has the traits of a good risk-to-reward setup. However, BYND still needs to prove itself by clearing over its 50-DMA at $64.40. If BYND can make two consecutive closes over the 50-DMA, it can then confirm a recovery phase and begin an upward trend.

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ETF Summary

• S&P 500 (SPY): Needs to hold over 444.
• Russell 2000 (IWM): 209.05 new pivotal level to clear.
• Dow (DIA): 350 to clear and hold.
• Nasdaq (QQQ): 356.90 the 10-DMA pivotal area. 367 main resistance area.
• KRE (Regional Banks): 76.24 next resistance.
• SMH (Semiconductors): Sitting in choppy area. Watch to hold over the 200-DMA at 271.
• IYT (Transportation): 266.77 the 50-DMA to clear.
• IBB (Biotechnology): Needs to hold over 129.
• XRT (Retail): 83.56 resistance. Sitting in the middle of its range.

Forrest Crist-Ruiz

MarketGauge.com

Assistant Director of Trading Research and Education