Editor's Note:

The action in the stock market today felt bearish with the afternoon reversal following the FOMC announcement. Yet stocks still look a little short-term oversold. Further complicating matters is Cisco Systems (CSCO) earnings report after the bell tonight. The company beat the estimate, beat on revenues, guided higher and raised their stock buy back program. All in all it was a very bullish report from CSCO and John Chambers shared positive comments on the recovery. This could easily fuel a rally in technology stocks on Thursday. Yet I suspect the market will just chop sideways in a volatile fashion until we see the October non-farm payrolls data due out Friday morning.

I am not adding new candidates to the newsletter at this time. However, if you are looking for a trade consider a strangle on Starbucks (SBUX). The company reports earnings after the bell on Thursday night. Traders could open a strangle position ahead of earnings with the expectation that shares will see a big post-earnings move on Friday.