Transcript:
Tom Vaughan:
Everybody, welcome to Wednesday, the S&P 500 was down a little bit more than point 7%. Today, kind of as expected yesterday, we got really close to the 200 day moving average and retreated. It’s kind of continued that retreat today, I’ve been mentioning that the market is really stretched out. And it’s bound to have some type of a pullback. It looks like what we’re getting now. But it is important to stay above the kind of breakthrough that we had before. We’re quite a bit above that at the moment. But that’ll be what we watch for as it pulls back, it could come all the way down to the top of that resistance that we got through before and then maybe bounce, you know, we’ll see what happens. But again, don’t expect great things here for a little while, just because the market has run so quickly, so fast. And I actually think this is a more positive thing to kind of consolidate here build up some more, you know, support, if we are going to try to get through that 200 day moving average, that would make that a healthier move. Sometimes these things just get so stretched out, it’s just bound to pull back. And I get a little bit more nervous when things go up so fast. So I do like to see what’s happening here.
I think this is good. A retail sales for last month came out actually flat. But if you take out autos and gas which both dropped, retail sales are at point 7%, although part of those increases in retail sales is because essentially people are buying the same things they bought last year for more, which makes it look like you know, retail sales are up overall. So but it does show the consumer is still out there, still buying, still moving in the right direction as far as that goes. So that’s good. And the Fed minutes from the last meeting came out. And there’s a lot of conversations in there about making sure that they didn’t over raise rates, that they were going to have to be a little bit careful there. These are not words that we’ve heard for a while from the Fed. They’ve been very adamant about, you know, really going after it. So they are trying to show, at least in the you know, they’re speaking that they’re moderating. Now, the market took off after that meeting, and a lot of the interviews that they’ve had recently have been a lot more aggressive. Again, a market that runs and runs creates a looser financial situation, which is more of a problem for inflation. Because people feel they can spend more money if their stock accounts and their 401k Isn’t what have you are going up. So kind of fighting the fed on that one. We’ll see how that plays out. But the market is doing pretty much what’s expected. Very interesting timeframe to watch. I would expect you know that we’ll see some kind of ups and downs happening this week. We do have the end of October expiration for options on Friday. So all kinds of strange things can happen then maybe better information will be achieved early next week, and hopefully we can hang in there and then eventually break through the 200 day moving average. So anyway, that’s what’s happening right now. I look forward to talking to you tomorrow. Thank you