T3’s Take 3: NASDAQ Smashes to Record High on Post-Fed Optimism


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1) All-Time Nasdaq Highs

The Nasdaq Composite slammed to a new all-time 5341.88 all-time high today on continued momentum in large-cap technology and biotechnology shares.

Traders remain pleased with yesterday's Fed statement, which indicated a slow and steady rise in interest rates over the long run.

The S&P 500 gained 0.6% to finish at 2177, while the Russell 2000 rose 1.5% to 1263.

All S&P sectors finished in the green today, and we saw relative strength in some of yesterday's winners like real estate, oil service, airlines, and industrials.

Gold miners saw profit taking despite an increase in gold prices, which smells like profit-taking after a massive run up yesterday.

2) Sentiment Check

Permabulls always say everyone’s bearish. And permabears always say everyone’s bullish.

So I regularly check various sentiment measures to get a realistic reflection of the market’s mood.

Right now, traders seem somewhat bearish, even though the S&P 500 is less than 1% from its 2193.42 all-time high.

The ISE Sentiment Index, AAII Sentiment Survey, and S&P 500 options prices all indicate that traders are very concerned about a drop in the market, which implies that this rally is not widely trusted.

You can read more about this here.

3) Buy Buy Airnb?

This afternoon, Fortune reported that home/lodging sharing company Airnb secured $555 – $800 million in new financing at a $30 billion valuation.

Unfortunately, this means that Airbnb will not join what has been a fairly hot IPO market.

Recent new issues like Twilio (TWLO) and Acacia (ACIA) have become darlings among momentum traders.

But with this significant cash infusion, it appears that Airbnb won't be tapping the public markets for financing any time soon.

Friday's Trading Calendar

US Economics (Time Zone: EDT)

09:45 Markit US Manufacturing PMI (Sep P): exp. 52, prior 52
12:00 Fed's Harker, Mester, Lockhart on Panel at Philly Fed Conf
12:30 Fed's Kaplan Speaks in Houston in Moderated Q&A
13:00 Baker Hughes U.S. Rig Count (9/23): prior 506
13:00 Baker Hughes U.S. Rotary Gas Rigs (9/23): prior 89
13:00 Baker Hughes U.S. Rotary Oil Rigs (9/23): prior 416

Global Economics

03:00 EUR French Flash Services PMI
03:30 EUR German Flash Services PMI
04:00 EUR Flash Services PMI
08:30 CAD Core Retail Sales
08:30 CAD Core CPI


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