12/14/22W Uptrend – Market shivers about Greenspan market comments.

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12/14/22W  Uptrend – Market shivers about Greenspan marketcomments.

THE MARKET’s MESSAGE:  Nasdaq and S&P500 indexes stay in indecision pinnedbetween their 50-day and 200-day lines.

WEDNESDAY’S MARKET: HIGHLIGHTS OF FEDERAL RESERVE CHAIRPOWELL’S COMMENTS

“Before I go into the details of today’s meeting, I would like to underscore for the American people that we understand the hardship that high inflation is causing and that … we are strongly committed to bringing inflation back down to our 2 percent goal. Over the course of the year, we have taken forceful actions to tighten the stance of monetary policy….Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy. Without price stability,… we will not achieve a sustained period of strong labor market conditions that benefit all.

“Today, the FOMC raised our policy interest rate by 1/2 percentage point. [NOTE: That 1/2% is less than the previous 0.75% increasesand was the expected rate change] …. We continue to anticipate that ongoing increases will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percentover time…. “

No unexpected surprises in Greenspan’s comments. So it is, “back to work” for the market on Thursday.  

NOTE about the missing Wednesday volume in the chartabove: Investors.com has changed sources for its market data and continues to workout the new relationship. You may have noticed wildly different volume numberson www.investors.com and www.marketsmith.com  I’m sure it will settle down shortly.

The reduction of the interestrate increase indicated that the Fed believes the economy is responding to priorrate increases and slowing down inflation. Let’s hope he’s right. (My grocery cart continuesto cost more each time I check out.)

In the meantime, note thatthe Nasdaq is holding between its 200-day above and its 50-day line below whichcauses those 2 lines to get closer.

Now that the Fed’s announcementis out, the market should now knows what it has to work with into next year. Iwould not be surprised if sideways is the market action until the next earningsperiod.

GOOD NEWS:  NOTE the total of stocks with top ratings of “A”or “B” has risen to 59%. We should be able to find some CAN SLIM (IBD’sinvesting style) that are breaking out of strong bases.  Or you could throw a dart at the Wall Street Journal summary pages this weekend and have the odds in your favor!

Alright…. I am kidding about the darts. But those 59% As + Bs totals should make you interested in looking for those winners.

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Note in the MARKET FACTORStable below there were 5 accumulation (heavy buying days) and 5 distribution(heavy selling days) in the last 20 trading days. All of the major indexes havepositive “B” ratings.

On the MARKET ACTION OVER THE LAST 20 DAYS table below, the Nasdaq had its first accumulation day (when price and volume rose) in 2 weeks. Now I look for the market to show me more!

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I am looking for just one stock at a time, for training purposes.

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You can also call me and leave a question or thought about the market. (Please use the same ARMCHAIR NEWSLETTER SUGGESTION in the subject line.

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Wishing you and yours a happy and safe holiday season.

Charlotte Hudgin, The ArmchairInvestor,   (214)995-6702

www.ArmchairInvestor.com   (214)995-6702   editor@armchairinvestor.com

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