Stocks Rocket Higher On Dovish Fed Commentary

MACRO

Stocks had a nice day after the Fed cut rates by another 25 bps. The market took off into the end of the day after it became reasonably clear that Fed was on hold with rates or lower or they would be lower for the foreseeable future. That clue came when Jay Powell noted there would need to be a significant uptick in inflation from their symmetric 2% target. It means that rates are likely staying put or going lower for the foreseeable future since inflation has steadily been over 2% for some time. The S&P 500 shot up after that. The big spike higher came around 2:45 PM.

I think that means 3060 is the next stop to look for on the index.

spx, s&P 500

STOCKS

Facebook (FBWealth Strength IndexAAPL is Extremely Up and trending Up)

Facebook is rising after-hours reporting better than expected results, which comes as no surprise, in terms of the beat. The stock is up slightly after hours, not a big move, certainly not lower as I thought would happen, which was a decline. But after-hours trading is always tricky, so maybe I can be proven right by days end tomorrow.– Some Thoughts On FBWealth Strength IndexAAPL is Extremely Up and trending Up And Apple Heading Into Results

The stock failed at resistance and is pulling back some. The stock has struggled at resistance around $191 multiple times over the past month.

facebook, fb

Apple (AAPLWealth Strength IndexAAPL is Extremely Up and trending Up)

Apple is also rising after-hours to as highs as $252 but now is it coming back down some at $247. I still think this stock overbought short-term, and again my second wrong call of the day.

aapl, apple

Netflix (NFLXWealth Strength IndexAAPL is Extremely Up and trending Up)

Netflix had a great day rising above resistance at $285.  It probably sets up a retest of resistance at $300.

nflx, netflix

Roku (ROKU)

Roku got to $150 and stalled out. I think the stock is going lower from here back to $135.  It is only up 50% in the month of October.

roku

Starbucks (SBUXWealth Strength IndexAAPL is Extremely Up and trending Up)

Starbucks is rising after results tonight to resistance around $87.25, which I really didn’t see early today. The good news is that the downtrend is broken and perhaps the stock can rise back to $91.

sbux, starbucks

No commentary tomorrow morning.

-Mike

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