Stocks Rocket Higher On Dovish Fed Commentary
The stock market rocketed higher during the FOMC press conference when it became the Fed was going to keep rates for some time to come.

Stocks Rocket Higher On Dovish Fed Commentary

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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October 30

STOCK MENTIONS: AAPL, FB, NFLX, ROKU, SBUX

MACRO: SPY

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX, AAPL

MACRO

Stocks had a nice day after the Fed cut rates by another 25 bps. The market took off into the end of the day after it became reasonably clear that Fed was on hold with rates at current levels or lower for the foreseeable future. That clue came when Jay Powell noted there would need to be a significant uptick in inflation from their symmetric 2% target. It means that rates are likely staying put or going lower for the foreseeable future since inflation has steadily been under 2% for some time. The S&P 500 shot up after that. The big spike higher came around 2:45 PM.

I think that means 3060 is the next stop to look for on the index.

spx, s&P 500

STOCKS

Facebook (FB)

Facebook is rising after-hours reporting better than expected results, which comes as no surprise, in terms of the beat. The stock is up slightly after hours, not a big move, certainly not lower as I thought would happen, which was a decline. But after-hours trading is always tricky, so maybe I can be proven right by days end tomorrow.– Some Thoughts On FB And Apple Heading Into Results

The stock failed at resistance and is pulling back some. The stock has struggled at resistance around $191 multiple times over the past month.

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facebook, fb

Apple (AAPL)

Apple is also rising after-hours to as highs as $252 but now is it coming back down some at $247. I still think this stock overbought short-term, and again my second wrong call of the day. Apple May Slide Following Results

aapl, apple

Netflix (NFLX)

Netflix had a great day rising above resistance at $285. It probably sets up a retest of resistance at $300.

nflx, netflix

Roku (ROKU)

Roku got to $150 and stalled out. I think the stock is going lower from here back to $135. It is only up 50% in the month of October.

roku

Starbucks (SBUX)

Starbucks is rising after results tonight to resistance around $87.25, which I really didn’t see early today. The good news is that the downtrend is broken and perhaps the stock can rise back to $91.

sbux, starbucks

No commentary tomorrow morning.

-Mike

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.