Jerry Samet
10-13-2022, 06:32 PM
It was a volatile market today. The major averages opened lower after the CPI came in higher than expected and went to significant losses. They quickly found a bottom and reversed higher and rallied into the close. All the major averages finished near their intraday trading highs with strong gains. The COMPQ and the NDX rallied 2.23% and 2.30% respectively. The SPX gained 2.60%. Volume was much higher across the board. It gained 31.51% on the Nasd and 27.77% on the New York. Leading stocks were higher as well with the leaders index gaining 2.67% on the day. The index closed near the highs of its trading range on lower volume. The CPI report came in higher than expected and the market sold off early as you would expect. Then buying came in and the market staged a positive reversal. The major averages finished with strong gains on higher volume. It is surprising that the market turned around like this on higher than expected inflation, but there was an oversold condition so a bounce was possible. I didn’t see any news that could have caused the reversal, but moves like this can trigger at least a short term rally. I don’t think it will be much more than that, but we could well go higher for a short time. Jerry