Jerry Samet
12-13-2023, 06:26 PM
After trading hesitantly before the market took off after a much more dovish Fed announcement than expected. The major averages rallied strongly after the announcement and all the major averages finished near their intraday trading highs. The COMPQ and the NDX gained 1.38% and 1.27% respectively. The SPX rallied 1.37%. Volume was considerably higher across the board. Leading stocks were stronger as well with the leaders index rallying 1.22% on the day. The index closed high in its trading range on higher and above average volume. The market traded around unchanged most of the day until the Fed Announcement and Powell’s press conference. They were very dovish and mostly ruled out more rate increases and laid out a schedule for rate cuts next year. I don’t believe anyone expected it and the market rallied strongly into the close. The higher volume showed that large institutional players were in there buying heavily. All the major averages made new 52 week highs and the INDU made an all time high. Market internals were very strong. Leading stocks are acting well and are producing meaningful gains. The Fed action really gave a lift to the rally and it looks like there is more to come. There was really nothing bad about today’s action. If you are heavily invested and your positions are working, just sit back and enjoy the ride. It isn’t over yet. Jerry