11/25/22 “Majority:” Slower Rate Hikes Ahead – NAILED IT!


On Wednesday, markets climbed higher and reacted positively to the release of the November Fed FOMC minutes.

Images from Getty & Unsplash

All 4 indexes ended the day higher…

  • Dow Jones +0.3%
  • Nasdaq +1.0%
  • S&P 500 +0.6%
  • Russell 2000 +0.2%

The minutes showed the decision to raise rates in November was unanimous.

Looking ahead … “a substantial majority of participants judged that a slowing in the pace of [rate] increase[s] would soon be appropriate,” the minutes said.

  • More inflation data will be released ahead of the next FOMC meeting
  • It’s still too early to say what next month’s meeting will have in store.

Sector Round Up

10 of 11 sectors ended the day higher. 

Leading the charge…

  • Consumer Discretionary (XLY) +1.4%
  • Communications (XLC) +1.3%
  • Utilities (XLU) +1.1%

The lone loser…

  • Energy (XLE) -1.1%

Tesla Pops

Shares of Tesla (TSLA^) rose 8% on Wednesday.

Several Wall Street analysts upgraded the stock…

  • A Wedbush analyst called Tesla’s 58% plunge “overdone
  • An analyst for Citigroup (C) said the pullback “balanced out the near-term risk/reward”


The SPY is showing a clear uptrending channel…

SPY Daily Candles – Chart via thinkorswim

Our reading of the market is generally bullish.

  • The VIX fell to new 3-month lows
  • RSI levels, the Dow remains overbought while the rest are neutral
  • The Put-to-Call Ratio ended Wednesday oversold after jumping to 3-month highs near the open

Bears are growing more aggressive, but as the chart above shows, the trend is clearly pointing up.


Today, the markets will have a short session. The closing bell will ring at 1 pm.

Next week we’ll say goodbye to November.

So far, our analysis of Q4 has played out nearly perfectly. If the current trend holds true…


*Low Float
^Open Position

*NINE support at $8
*UCL on watch
PDSB resistance at $9, support at $8
SCPH support at $7
IMMR support at $7
DPRO support at $1
PBYI support at $4
^IMVT support at $13
WNC support at $24, resistance at $26
^MANU on watch
MGNX support at $6
^CROX support at $85
^RYAM support at $7
PRVB support at $8
MICT on watch
ADMA support at $2.85
TME resistance at $6
GILD support at $84

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