EB Daily Market Report - Quick Update - Wednesday, December 13, 2023

Well, the Fed has spoken. As expected, there was no rate hike in the fed funds rate this afternoon. And there's also been no head fakes since 2pm ET, which we typically see. U.S. equities are moving in unison in only one direction - UP. The IWM was trading near 186 at the time of the Fed announcement. It's now 192, gaining 6 bucks in an hour. The QQQ was just above 399 and it just touched 404, eclipsing the all-time high from late-2021 at 403.43. The S&P 500 is currently 4703, reaching my 4700 call from MarketVision 2023, held the first Saturday in January. Currently, this is a melt up.

Volume has been soaring since 2pm. It was light leading up to the Fed announcement, but it is making up ground now. I'm still on reversal watch with those negative divergences and the much-lower max pain levels that we discussed at last night's event. But standing in front of a freight train will usually get you run over and, right now, this bullish freight train is out of control.

The 10-year treasury yield ($TNX) is down 17 basis points to 4.03% after hitting a low of 4.01%.

All in all, the market got exactly what it wanted from the Fed. The language used by the Fed indicates that they're still open to potential rate hikes if inflation flares up, but otherwise, it's effectively done raising rates. They also indicated that they're now expecting to cut rates 3x in 2024, after previously announcing that the fed funds rate would be cut only twice (down from the four that were previously discussed).

For those that joined me in today's LIVE trading room, I've taken profits on LMND. My entry price, during the trading room, was 17.08 and I discussed a target of 19.00. Given that it just hit 18.60, I can't pass up more than an 8% gain in just 5 hours, so I'm out.

Let's see how we close today before declaring another bullish victory, but everything looks excellent for the bulls at the moment.

Happy trading!

Tom