Now the Market Can Make Its Next Move Up

For the past several months, the bond market was driving the bus... The yield on the 10-year U.S. Treasury note surged up to around 5% in mid-October. [Chaikin PowerFeed]( Now the Market Can Make Its Next Move Up By Marc Chaikin, founder, Chaikin Analytics For the past several months, the bond market was driving the bus... The yield on the 10-year U.S. Treasury note surged up to around 5% in mid-October. That pushed the S&P 500 Index into an official "correction" in late October. The benchmark index was down more than 10% from its peak in late July through that point. But things have changed over the past few weeks... Recommended Links: [Where Stocks (and Gold) Are REALLY Going Next]( Man who nailed the recent market bottom within 24 hours names exact day 2024 could see its biggest move. And how you could double your money 10 times along the way, without touching stocks. [Learn more here](. [Tech insider: "Watch your mailbox"]( You could soon get a strange package from the federal government. It's part of the biggest overhaul to our money in decades. And it could change your life (and retirement) in ways that’ll surprise you. [Full story](. In short, Federal Reserve Chair Jerome Powell was recently talking tough about the potential for more interest-rate hikes to combat inflation. But the bond market wasn't buying it... The 10-year Treasury's yield has dropped roughly 50 basis points to its current level around 4.5%. At the same time, declining 30-year home mortgage rates, a weakening U.S. dollar, and a continued drop in oil prices have led to a sharp, multiweek rally for stocks. The S&P 500 has now climbed about 9% off its October 27 bottom. And notably, this rally is happening after a robust third-quarter earnings season... Overall, earnings for S&P 500 companies were stronger than expected in the quarter. These companies saw earnings growth of 4% year over year. (And excluding energy stocks, it was an even better 10%.) That was the first year-over-year gain in more than a year. U.S. GDP grew more than 4% in the quarter as well. And despite "hawkish" comments from various Fed officials (including Powell last Thursday), the data suggests that inflation continues to abate. We got confirmation of that this week... I'm talking about the release of the October data for the Consumer Price Index. The report came out Tuesday morning. It revealed that year-over-year inflation is still cooling. So now, it means another interest-rate hike in December is likely off the table. In the end... the "earnings recession" in the U.S. economy is now over. At some point in the next three months, the Fed will shift its focus from stifling inflation to being more accommodating to economic growth. That's important... It's a "bullish" setup for the stock market heading into 2024. Last month, I told a group of our paid subscribers... We're now in the sweet spot of the year when stocks often make a "V-shaped bottom." Historically, they rally in November and December to end the year. That's happening right now... The S&P 500 is grinding out progress. As I said earlier, it's up roughly 9% from its bottom in late October. And importantly, it remains up around 17% so far this year. The "rolling bull market" is still alive and well. We survived the recent correction. And when we put everything together, I'm confident that stocks will trade higher into the end of 2023. And if you're looking for places to put money to work, consider this point... The strongest stocks in the technology and financial sectors have led the market's rally off its late-October low. And I believe they'll keep leading the way over the next two months. Good investing, Marc Chaikin P.S. Earlier this week, I sat down with an expert in a little-known strategy that I've spent 30 years studying myself... We wanted to determine exactly where stocks (and gold) could be heading next. And we found that something big is likely coming in early 2024. If you missed our discussion, that's OK. For a limited time, you can [watch the full replay right here](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.49% 11 12 7 S&P 500 +0.16% 146 248 103 Nasdaq +0.08% 44 41 14 Small Caps +0.18% 563 949 414 Bonds -1.40% — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks have turned somewhat Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Real Estate +4.28% Information Technology +3.70% Discretionary +3.69% Materials +3.58% Industrials +3.56% Communication +3.49% Financial +3.12% Staples +2.46% Energy +2.24% Utilities +1.63% Health Care -0.16% * * * * Industry Focus Health Care Services 14 33 15 Over the past 6 months, the Health Care Services subsector (XHS) has underperformed the S&P 500 by -15.03%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #14 of 21 subsectors and has moved down 2 slots over the past week. Indicative Stocks [rating] USPH U.S. Physical Therap [rating] CYH Community Health Sys [rating] AHCO AdaptHealth Corp. * * * * Top Movers Gainers [rating] TGT +17.75% [rating] VFC +14.13% [rating] CTLT +11.34% [rating] EXPE +6.28% [rating] PARA +5.19% Losers [rating] VRTX -5.57% [rating] LLY -3.65% [rating] CEG -3.58% [rating] TJX -3.32% [rating] ACGL -3.32% * * * * Earnings Report Reporting Today Rating Before Open After Close WMT AMAT, CPRT ROST BBWI No earnings reporting today. Earnings Surprises [rating] TGT Target Corporation Q3 $2.10 Beat by $0.62 [rating] PANW Palo Alto Networks, Inc. Q1 $1.38 Beat by $0.22 [rating] CSCO Cisco Systems, Inc. Q1 $1.11 Beat by $0.08 [rating] TJX The TJX Companies, Inc. Q3 $1.03 Beat by $0.04 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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