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12/14/23 Rate Cuts in Sight

News:

Yesterday, the Fed held interest rates unchanged at 5-¼ to 5-½ percent, as expected.

Inside their summary of projections was a surprise…

Fed Officials are expecting an average of three rate cuts in 2024, according to the newly released dot chart.

Chart from The Fed

Ahead of the release, stocks treaded water. After, they rocketed higher.

The indexes rose sharply. The Dow Jones posted an all-time high close.

  • Dow Jones +1.4%
  • Nasdaq +1.4%
  • S&P 500 +1.4%
  • Russell 2000 +3.5%

Our seasonal swing trades are showing unrealized profits of 30-40%. We’ll start taking profits above 50%.

Sector Round Up

All 11 sectors were green on Wednesday

At the top…

  • Utilities (XLU) +3.8%
  • Real Estate (XLRE) +3.6%
  • Healthcare (XLV) +1.8%

Bring up the rear…

  • Industrials (XLI) +1.1%
  • Communication (XLC) +0.9%
  • Technology (XLK) +0.9%

Technicals: 

After 23 months, and a bear market, the Dow Jones reached new all-time highs. 

As a bonus, it closed above 37,000 for the first time ever.

DIA Weekly Candles – Chart from thinkorswim

The S&P 500 is about 2% away from its own all-time highs.

The Nasdaq needs to gain another 8% to reach a new high.

There are still some headwinds that could slow the rise.

Your latest readout…

Timing:

Tomorrow is the final triple witching of the year.

Over the weekend, we’ll pick our favorite stocks for our “free lunch” strategy. Those picks will be revealed on Monday morning.

Watchlist:

*Low Float
^Open Position

*CHSN on watch
OPFI support at $4
ALXO support at $12
AAOI support at $20
CCCC on watch
APLT support at $3, resistance at $3.20
HNST support at $2.50
ASPN support at $13
PRCH support at $2.20
JBGS support at $17

Secondary watchlist—float about 100 million

GPS support at $20
HPP support at $7.50
NMRK on watch
^IOT support at $35
S support at $24
LYFT support at $13

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