10/20/23 Powell’s Spooky Speech


On Thursday, markets opened near flat and drifted sideways ahead of Fed Chair Powell’s prepared remarks at the Economic Club of New York.

Once he started talking, the fireworks went off.

Chart from FinViz

The afternoon session bounced between red and green.

The indexes ultimately closed red and at their session lows…

  • Dow Jones -0.6%
  • Nasdaq -1.0% 
  • S&P 500 -0.9%
  • Russell 2000 -1.5%

Powell’s speech added little new information. The odds of another rate increase this year fell during and after his speech.

However, surging bond rates kept buyers at bay.

Sector Round Up

All of the 11 sectors ended Thursday lower.

Falling the least…

  • Communications (XLC) -0.1%
  • Energy (XLE) -0.2%
  • Technology (XLK) -0.6%

At the bottom…

  • Financials (XLF) -1.3%
  • Real Estate (XLRE) -2.5%
  • Consumer Discretionary (XLY) -2.6%

Notable Names

Netflix (NFLX^) closed 16% higher, propping up the communications sectors.

Tesla (TSLA^) fell more than 9%, dragging down the consumer discretionary sector.

The reasons are outlined in yesterday’s briefing.


The S&P 500 appears ready to retest seasonal lows…

SPY Daily Candles – Chart by thinkorswim

However, oversold conditions are not very far off.

We expect this dip to be bought. We’ll be watching for the market to prove us wrong.

Your latest readout…


Today, October options expire.

Watch for increased volatility, especially near the closing bell.

Next week, earnings season continues. Your list of the hottest names will be included in Monday’s update.


*Low Float
^Open Position

*PEV support at $1.40, resistance at $1.60
METC support at $11
EPAC support at $28
PGTI support at $30
MREO support at $1.80

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