Disappointed by the Fed? Watch These 3 Stock Charts Instead.

“What a bunch of babies!”

That was my reaction when, as an ardent believer in technical analysis over narratives, meme stocks, and Federal Reserve mania, I read that market expectations for a Fed rate cut this September dropped “all the way” to 58% from 65%. I’m only partially fluent in Fed-speak, but isn’t that essentially just a rounding error? Regardless, this week’s market action revolves around a range of events, from inflation reports to the start of earnings season. And of course, Wall Street’s favorite game of obsessively watching and waiting for tariff updates.

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Instead of this drama, let’s focus on a trio of stocks that are showing signs of lifting prices, even if the Fed is slightly less likely to cut rates. Each of these stocks is not exactly what I’d call “cheap.” And there’s plenty of risk involved in investing in anything these days.

However, from a pure technical standpoint, these three stocks are strong, and could get stronger. Let’s check the charts, while I wipe the sweat from my brow, because these stocks are giving off heat.

Stock Chart to Watch #1: Archer Aviation (ACHR)

What does this company do again? Just kidding. But if you asked me a month ago, I would have drawn a blank.

Archer Aviation (ACHR) aims to deliver on what we baby boomers might call “the Jetsons thing,” in reference to the old, animated TV show that featured flying local transportation. Which is exactly the business ACHR is in.

This was a $1.5 billion market cap stock in November 2024. A move like this one below created a “flying stock,” if you will.

And while this company has the classic paradox of cool, innovative, life-altering potential, it also has no sales growth. Because it has no sales, yet. But the chart is setting up in a way that reminds me of what it did 8 months ago.

Now as back then, it is at least a recovery candidate, after peaking briefly at $14. This one will undoubtedly suffer several air pockets along the way. But if viability is achieved, this can be one of those “I knew it when” type of stocks that gets much bigger in time. Or, it goes to zero if sales and earnings take too long to materialize.

Stock Chart to Watch #2: Alphabet (GOOGL)

What does this company do again? OK, really kidding this time.

Google (GOOGL) is a household name. And at 19x forward earnings and a debt-equity ratio of a microscopic 0.03x, this is not expensive. Nothing is “easy” in investing, but there’s a 12% gap from the current price to February’s high. This is a good reward-risk tradeoff to me.

Stock Chart to Watch #3: Meta Platforms (META)

In a market this giddy, I’d be remiss to not point out a Magnificent 7 member that is showing signs of an aging rally. The $700 area has been like a magnet for META this year. The stock peaked just above that level with the rest of the market in February, before plunging by about 30% in a matter of weeks. Yet here it is again, completing a wild round-trip.

And, while the stock is still hanging on, this is what I like to refer to as a situation where reward is still high, but risk is now higher than before. That may tip the balance for some investors. It is also why I tend to use option collars a lot, as discussed here in the past.

That Percentage Price Oscillator (PPO) at the bottom of the chart shows that META’s grip is slipping ever so slightly. This could be nothing. But it is also what stocks often look like before they cave in. With earnings coming in just two weeks, that could set the stage for a make-or-break scenario for trader time frames around META.

I may be a devout technician, but that doesn’t mean I ignore the obvious. With the arrival of earnings season, this is a good reminder that stock charting is a great tool. But its biggest weakness is “exogenous” events, such as an earnings miss. So watch closely with us as we see which stocks thrive and dive as results are announced over the next few weeks.

On the date of publication, Rob Isbitts did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com