The Fred Report - Mid Week Update October 25, 2023

Previous    Next 

The FRED Report – Financial Research, Education & Data    

Mid Week Update  

Volume 15, Issue 76
October 25, 2023

Download PDF Version here


Update of Market View

We have been looking for a yearend rally from a double bottom in the 420-area and we believe that has started and should last through the end of 2023. However, it should not be a straight-line move – it likely will be choppy. Will the market broaden out – that is the question?

We think it should, as we also believe interest rates have peaked and should decline, or at least stabilize. How to invest in this move? Aside from high relative strength names within 15% of their highs, as we discussed on last Thursday’s call, we have a quick ETF solution for you to use.

First, we would use RSP (Invesco® Equal Weight S&P 500), as that would benefit if the market broadens out. Second would be XLG (Invesco® S&P 500 Top 50 ETF) – which will benefit if large caps only move. We will show charts of these below. Notice that RSP is near 52-week lows, while XLG is within 15% of its highs. We show daily and weekly charts, below. Note that weekly stochastics are down, but XLG is stronger.

weekly_midweek_102523 weekly_midweek_102523

weekly_midweek_102523 weekly_midweek_102523

Other Points of Interest 

We take a quick look at PCEF (Invesco® CEF Income Portfolio ETF). This is an ETF of closed end funds. It has tested the 16-area and had an outside day positive reversal. In addition, it has an 11% yield. If we are correct on bonds, then this should enjoy a rally into yearend. Daily and weekly stochastics are oversold and not yet in buy mode, lagging TLT by a bit. This is an interesting play and we would try it here at these levels.

weekly_midweek_102523 weekly_midweek_102523

Fred Meissner is primarily responsible for the research in this report and certifies that: (1) all of the views expressed in this research accurately reflect his personal views about any and all of the subject securities or issuers; and (2) no part of his compensation was, is, or will be directly or indirectly related to the specific recommendations or view expressed him in this research.
This report is for your information only and is not an offer to sell, or a solicitation of an offer to buy, the securities or instruments named or described in this report.  Interested parties are advised to contact the entity with which they deal, or the entity that provided this report to them, if they desire further information.  The information in this report has been obtained or derived from sources believed by Fredco Holdings, Inc. to be reliable, but Fredco Holdings, Inc. does not represent that this information is accurate or complete.  Any opinions or estimates contained in this report represent the judgment of Fredco Holdings, Inc.  at this time and are subject to change without notice.  Fredco Holdings, Inc.  or its employees, officers, directors, principals, agents, affiliates or adviser may from time to time provide advice with respect to, acquire, short sell, hold or sell a position in, the securities or instruments named or described in this report.
Fredco Holdings, Inc. does not have investment banking relationships with any of the companies mentioned in this report and does not conduct investment banking business, in general.  Fredco Holdings, Inc.  and its employees do not receive compensation of any kind from any of the companies in this report.  Fredco Holdings, Inc. , its directors,  officers, principals, agents, advisers, affiliates and employees may maintain a financial position in the securities mentioned in this report, provided however that no buying or selling  activity will be taken with respect to a security referenced in a report by such parties within three days of such report’s publication.
The information contained herein was prepared by Fredco Holdings, Inc., which is solely responsible for the contents of this report.
Copyright 2010-2024 Fredco Holdings, Inc..  All rights reserved. This report is a publication of Fredco Holdings, Inc.  located at 4514 Chamblee-Dunwoody Rd, Suite 112, Dunwoody, GA 30338. 




Who is Fred Meissner, CMT?
Listen here:

The FRED Report is not authorized, endorsed, or affiliated with the Federal Reserve of St Louis and its FRED Economic Data.