The MARKet Update – 11/30/22

Good afternoon O$ members!

After being stuck in a range for the past 12 days the market finally broke to the upside today pushing past that 4050 area.  I watched the Powell presser today and I was surprised the market reacted so favorably to his comments.  I watched his previous presser and he said nothing new this time that he didn’t say last time.  Previously when he stated that there would be no pause in December but only a possible lower hike than what they’ve been typically doing, the market dumped.  This time when he said definitely no pause in December but maybe a lower hike, the market cheered and rallied.  Same news.  Different outcome.

In the ES futures chart we can see that typically with this kind of buying volume after 3 consecutive selling days, we either get a gap up, in the AM or a slight retreat, but then rise in day.  I’m not convinced of buying more calls in SPY right now due to the premium cost after this quick rise.  I won’t enter cheaper puts just yet as I want to see futures test that 4100 – 4130 level again as supply/resistance.

I’ve also been looking for a good candidate for a PUT in addition to SPY and MNST (Monster Beverage) is coming up as a good candidate.

It barely beat last quarter and yet it is not only at its year high but recently at its all-time high.  This is the company that can ignore all economic headwinds and recessions…?  I don’t think so.  I’ll be looking to enter these very soon.