Jerry Samet
11-30-2022, 06:35 PM
The market traded mostly in negative territory until Powell’s remarks set off a strong rally. All the major averages finished near their intraday trading highs as buying continued into the close. The Nasd averages were the strongest as big tech stocks rallied hard. The COMPQ and the NDX gained 4.41% and 4.58% respectively. The SPX rallied 3.08%. Volume was much higher. It gained 51.83% on the New York and 26.35% on the Nasd. Leading stocks were higher as well but lagged the overall market. The leaders index gained 1.28% on the day and closed near the top of its trading range. Volume was much higher and well above average. The market mostly traded in negative territory today until Powell spoke. He said the rate increases would continue but that the increases would moderate. The market took that to confirm that it would be 50 basis points at the next meeting. This information was pretty much in the Fed futures but the market rallied hard on the news and closed with large gains. The gains today pretty much insure that the weekly Coppock will turn up this week. That gives the rally a big kick. Since the follow through the market has only made modest gains with not many stocks producing worthwhile profits. That could change with the Coppock signal giving the market a boost. You must remember though that gains of this size occur almost exclusively during bear markets, so this is a continuation of a bear market rally. We should see some gains from here and a more aggressive stance is likely appropriate. Jerry