Editor's Note:
The QE elation that drove stocks higher in October continued on Tuesday. The major market indices rallied toward multi-month highs and in the case of the NASDAQ composite closed at new two-year highs. Wall Street expects the Republicans to win a majority seat in the House tonight. More importantly investors are focused on the FOMC decision tomorrow.

It's almost guaranteed that the Federal Reserve will announce some new form of quantitative easing tomorrow (around 2:15 p.m.). The question is how big will it be? If it's too small the market could crash in disappointment. If the program is bigger than expected ($500 billion) then I'd wager it's 50/50 that stocks spike higher on the news or sell off anyway. Yet if the Fed does announce a large QE program I suspect any profit taking wouldn't last very long (maybe a few days). I'm crossing my fingers we do see a market pull back so we can pick some new bullish candidates.

I'm not suggesting any new plays tonight. Stocks can be extremely volatile following a fed meeting with lots of intraday swings and whipsaws. Sometimes the first move is reversed the next day. I'm suggesting we wait and see how traders react before launching new trades.