The past few days the market has traded off the anticipation that the Fed may cut rates three times in 2024. The market liked this speculation and the Dow made new highs. Moderna helped the S & P rise as shares increased 11%. Pfizer had recently been in the news for their declining stock price. The demand for the Covid-19 vaccine continues to decline, resulting in lower pharmaceutical stock prices overall.
Retail sales data is telling us that consumers appear to believe inflation is slowing down. Consumer spending increased in November - a good sign this time of year. Let's see how 2024 starts and what the December data comes in at for this holiday season - this could be telling with how Q1 will go.
After Tesla stockholders received some bad news with a huge recall yesterday, prices were able to still rise almost 5% today on potential Fed rate cuts news. As the stock trades around $250, technically Tesla could be preparing for a breakout higher - $300 is a realistic target for Q1 2024.
We'll see how the trading week ends tomorrow. I'm anticipating an active volume day since we are heading into the last full trading week of 2023. Look for some follow-through higher in the equities as traders begin to position themselves for the new year.
Disclaimer: Past performance is not indicative of future returns. Opinions are my own. Profitable trades are not guaranteed.
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