Nasdaq, S&P 500 Snap Win Streaks As Yields Spike; TJX, Palantir, PHM In Focus | Stock Market Today

TL;DR

The Nasdaq and S&P 500 experienced a pullback after an eight-day win streak, attributed to higher bond yields, but there are still many promising setups in the market.

Transcript

good afternoon everyone and welcome to stock market today it's Ali Corum and kenri here with the breakdown of the action in today's session Thursday November 9th where we did see some selling but after an eight-day win streak for the NASDAQ it's the pause or pullback that we were all kind of expecting Ken yeah I mean both the NASDAQ and the S&P 500... Read More

Key Insights

• 👪 The market experienced a pullback after a significant winning streak, but there are still many promising technical setups in retail and home builder stocks.
• 💬 Higher bond yields, weak demand in bond auctions, and comments from Jerome Powell about the Fed's stance on inflation contributed to the market decline.
• 👪 Home builder stocks may benefit from potential slowdowns in existing home sales, and retail stocks like TJX Companies show consistent growth.
• ☠️ The market's reaction to interest rates and upcoming economic data, such as CPI data, will impact potential future actions from the Fed.
• ✋ The technical setups of stocks like Paler Technologies indicate potential higher prices if the confirmed uptrend stays intact.
• ❤️‍🩹 Despite concerns about the economy, there are still reasons to be optimistic about a year-end rally and the number of good setups in the market.
• ❣️ November and December tend to be positive months for the market, although today's heavy volume suggests some rough selling.
• ☠️ Home builders may offer opportunities for new builds as interest rates stabilize, and technicals improve.
• 👪 It is essential to recognize improving technicals and the potential for counterintuitive moves in the home builder and retail sectors.

Questions & Answers

Q: How did higher bond yields contribute to the market decline?

Weak demand in bond auctions and comments from Jerome Powell about the Fed's stance on inflation caused a spike in interest rates, leading to selling in the bond market and concerns about higher rates.

Q: Is it too early to be concerned about the market pullback?

The decline was expected after an extended winning streak, and although there are concerns about higher rates, there are still promising technical setups and reasons to be optimistic about a potential year-end rally.

Q: How does the NASDAQ's position relative to its 50-day moving average affect the market?

Ideally, the NASDAQ would find support at the 50-day line to maintain the uptrend. However, the bond market's influence and selling pressure on bonds may impact the market's performance.

Q: What is the outlook for home builder stocks?

Home builders, like PY Group, may benefit from existing home sales slowing down due to higher interest rates. This counterintuitive move could result in new build purchases and a potential uptrend for home builder stocks.

Summary & Key Takeaways

• Both the Nasdaq and S&P 500 had a down day, with the Russell 2000 experiencing a significant decline due to higher bond yields.

• Despite the pullback, there are still plenty of good setups, particularly in retail stocks such as TJX Companies, software company Paler Technologies, and home builder PY Group.

• The major indexes are testing their 50-day moving averages, and it remains to be seen whether they will hold.