Thursday, December 14, 2023

Today's US Stock Market 12/14/2023

The S&P 500 breaks 4700 and 10 Year Treasury yield falls below 4% after Federal Reserve's dot plot implies 3 rate cuts in 2024 compared to 2 in September. The markerts are now pricing in as many as 6 rate cuts by the Fed in 2024 according to Bloomberg . Investors are now betting on the success of the Fed's attempt to engineer a soft landing for the US economy.

The S&P 500 is now at its most overbought level in over 2 years (CCI is at 263 level). Even though the market trend is up but it may need time to digest the recent gains before moving higher. The likely scenario would be that the stock market trades in narrow range in the next few day then rally during the Christmas week into year end. S&P 500's next target to attack is its all time high at 4818 level. Market strategy is to hold stocks (not buy) now and wait for more rally to come. Sectors likely to perform better in the next rally are: Crypto currency (BITO, GBTC), small cap (IWM), biotech (IBB), us treasuries (TLT), energy (XLE), gold stocks (GDX ) and regional banks (KRE).




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