EB Daily Market Report - Friday, November 15, 2024

Dear Members.

First, a reminder that Tom Bowley will be conducting a webinar tomorrow covering Small and Mid cap stocks. The webinar will begin at 11:00 am EST and you will receive room instructions prior to the start of the event.

It's options expiration Friday, and right on cue, all of the major indexes are lower with tons of call option premium wiped out, right in line with what Tom talked about during Tuesday's Max Pain webinar.

In fact, you can see that all of the major indexes, including the Russell 2000, have retreated to their respective 20 day moving averages. Now the question will be, will this selling be enough? 

We started seeing the selling pick up yesterday after Fed Chairman Powell indicated the Fed was in no hurry to lower rates. This, coupled with a few reports showing some strength in the economy saw the 10 year Treasury Note touch 4.5% before backing off a bit.

This renewed worry has lifted the VIX back above 15 but it remains well below the recent high of 23.42. 

We might get a better feel for where the market is headed in the near term, depending on where the S&P closes by days end. Right now the 20 day is at 5875 so a close below that level could indicate further selling. On the other hand, any recovery by day's end might indicate nothing more than some profit taking.

Tom will be back with his Weekly Report on Monday.

At your service,

John Hopkins