Treasury Yield and US Dollar decline directly coincided with US Equity gains

Looking back at the start of October, we’ve seen a very nice kickoff to Q4, and almost too nice of a start following over a 5% gain in Stock indices over the last two trading days.  S&P gained more than 200 points, representing the best two-day S&P gain since April 2020.  Breadth showed an even more impressive gain with nearly eight sectors turning in gains of 3% or greater on an equal-weighted basis.  This kind of rapid bounce is normally dismissed by many as being short-covering, and some of the stocks which rallied were indeed former laggards.  However, our pullback into October had multiple reasons for reversing course as has been discussed numerous times in recent days.  Most importantly, sentiment and cycles lined up at a time when seasonality turned bullish while breadth was extraordinarily compressed.  Overall, I suspect that some consolidation could be due before this rally extends too much more, and overhead resistance near SPX-3890 is strong while some backing and filling looks like a real possibility.  Overall, long positioning is favored, looking to buy dips in the days ahead for rallies back higher into mid-October. First important upside target looks to intersect near 3890 and then 3950 on gains.

Healthcare really kicking into gear

Don’t look now, but my 2022 Sector overweight of Healthcare has finally started to trend sharply higher, at a time when many had given up on this sector.

Subscribe Today to FSI Macro

If you are an existing member, to see your special offers.

Monthly

-15% $169/mo

List Price $199

Savings: $30

Claim This Offer!

Annual

-32% $1,622/yr

List Price $2,388

Savings: $766

Claim This Offer!

At FS Insight we offer a 30-day risk-free cancellation period for all new memberships.

View all FS Insight products with our exclusive Black Friday offers!

Why FS Insight

FS Insight helps you invest confidently with the same research banks and hedge funds use.

Daily Updates from Tom Lee

Start your day with Tom Lee’s pre-opening bell report. Navigate the trading day with Tom’s daily macro minute video and updates on key developments.

Real-Time Alerts from Tom Lee and Mark Newton

Stay in the loop with FlashInsights, real-time commentary on market-moving events delivered instantly from our research heads to you.

Daily Technical Strategy Report
and Video

Tactical opportunities and actionable signals, including daily in-depth analysis on current market technicals.

Monthly Market Update Webinars Presenting Timely Top Ideas

Get a behind-the-scenes look at our top stock ideas. Learn what makes each pick timely at our monthly webinar and Q&A with Tom and Mark.

Access Stock Lists Developed by Tom Lee and Mark Newton

We offer a variety of stock lists across methodologies and time horizons. Choose the portfolio that best fits your investment style.

Engage with Tom and Mark

Your membership includes members-only webinars and fireside chats. Join Q&As with our research team, CEOs, and industry experts across AI, geopolitics, and more.

Disclosures (show)

Sign in to read the report!

We have detected you are an active member!

Ray: 88f86a-bc2148-6126f9-f188f7-b09cf2

Want to receive Regular Market Updates to your Inbox?

I am your default error :)

Events

Trending tickers in our research