EB Daily Market Report - Wednesday, November 2, 2022

Today marks the latest Fed rate hike (expect 75 basis point hike) and policy statement. Some believe we'll see the Fed become a bit less hawkish, suggesting a slowing of rate hikes and possibly indicating that the rate hikes to date are adequately doing their job. Fed meetings and CPI reports (October CPI report will be released Thursday, November 10th) have NOT been kind to U.S. equities the past few months. A change in that regard would be welcome news for the bulls.

We've seen mostly selling today, but I'm honestly not all that surprised. Given the market conditions throughout 2022 and seeing past responses to recent Fed announcements, who would want to take aggressive positions ahead of this meeting? It's interesting to see the significant rotation into Dow Jones stocks over the past 4-5 weeks. Many of these component stocks were hurt with the rapidly-rising dollar as currency translations lower earnings in foreign countries. But now they are really strengthening. Could that be signaling that the rate hikes are coming to a close? Possibly. Again, let's see what Fed Chief Powell has to say in just over 30 minutes.

I'm in the midst of preparing for our HUGE event this Saturday, November 5th at 10am ET - "Understanding Market Manipulation". I hope everyone can make it - or at least try to review the recording that we send out. We'll time stamp it to make it easier to find the subject matter of most interest to you.

EB.com paid members DO NOT need to register for this event. You are AUTOMATICALLY registered and we'll send you room instructions on Saturday morning before the event.

Because of my current preparations, I'm providing a link to an article that was just written over at StockCharts.com, which provides a few things that I'll be watching after 2pm ET today and over the next few days. To view this article, please CLICK HERE.

Our Daily Market Reports will likely be brief the remainder of the week and John Hopkins may send out a quick update tomorrow and/or Friday as I'll be very busy.

Happy trading!

Tom