Jerry Samet
09-28-2022, 08:27 PM
The market finally posted a solid rally day today. The major averages opened slightly higher but worked their way up the rest of the session. All the major averages finished near their intraday trading highs. The COMPQ and the NDX gained 2.05% and 1.97% respectively. The SPX rallied 1.87%. Volume was slightly higher across the board. Leading stocks had a good session as well with the leaders index gaining 2.66% on the day. The index closed high in its trading range on lower and well below average volume. The market reacted well when the Bank of England announced that it would reverse its QT and start buying Guilts on the long end to support their bond market. Long rated around the world fell hard and produced a strong stock market rally. This is a good rally day after a big decline and so far that is all it is. Bear markets are filled with strong rally days that get people all excited. We could see a small over sold rally here, but that is likely all it will be. It will likely be more of a shorting opportunity than a buying opportunity. Jerry