Editor's Note:

Editor's Note: I think it is smarter to wait until we see how the market reacts to the FOMC announcement tomorrow prior to initiating new plays. This market has been tough enough to navigate over the past week or two and initiating a new play by guessing what happens tomorrow at 2:15 PM EDT is simply that, guessing. If the quantitative easing language remains we have plenty of longs to benefit, however, if the language changes or there is a surprise rate increase we may have already seen the highs of the year. And I will be ready with biased positions for either direction in tomorrow's newsletter.

Here is a trade idea for those of you who are interested: Long JNJ – the stock has upward trend line support from November and horizontal support from a prior resistance level on February 2nd. JNJ tends to be a defensive play so it may work in a declining market and should participate in an advancing market.