Jay Woods, CMT, Chief Global Strategist at Freedom Markets joined Benzinga's Premarket Prep team to discuss the trends that he's seeing in the market.
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00:00All right, Jay Woods, market strategist over at Freedom Markets, how are you doing?
00:06I'm doing all right. Thanks for having me back.
00:09Of course. So since the last time we've talked, a lot has happened. The Fed cut 50 basis points.
00:15We've been kind of bouncing around, but at the end of the result, all time highs. How
00:19are we feeling, Jay?
00:20Yeah, we're feeling good. That little September swoon that I thought we would have, that little
00:26pause, we broke out. I was a little weary. That 50 basis point cut, I don't know if you
00:33guys were calling for it. I definitely didn't see it coming. I know Powell kind of got word
00:38to Timoros there before the meeting and the whispers came out. And that's why the odds
00:44changed so much as to what the cut would be. And I also want to know, who are these people?
00:49How did these odds change so much? We've been doing this a long time, Joel. I've never seen
00:54one 50 versus 25 debate like this ever and be so divided about it. And then two, the odds of
01:02the rate cut or when we were doing hikes a year ago changed so dramatically. It was like with the
01:09wind. But the thing is that the market is the one that matters and the market voted that they
01:14approved of this. And now we're slowly and steadily going up. And what hasn't really
01:20participated just yet? Technology. If you look at the top performers over the last three
01:25months, technology is number 10 out of 11. So they're right on the bottom, only beating energy
01:31out. And I think that really sets us up well, going into the fourth quarter, because we look
01:37at these technology names. Thank you, Micron yesterday, breaking out of that little downtrend
01:42and that consolidation period. I love how quick you guys are. I mentioned a stock and boom, you
01:47guys have it on the screen. And now Nvidia is coiling. And we saw this show last year at the
01:54exact same time, where in August, it peaked. It came back. This time it came back 35%. That was
02:01a hell of a pullback. But it didn't break. It didn't break its long term trends. And now I see
02:07construction in these technology stocks. And if they get back to just their yearly highs, which
02:13all time in most cases, that's going to be the tailwind this market needs, because they make
02:18up such a great percentage of the S&P 500, that a 5% rally, that's a layup, and that's 6,000. So
02:25when you come on and say, oh, S&P is going to 6,000, you sound like, oh, wow, that's a crazy
02:30call. No, it's not. It's a 5% from where we are. We got three months to do it. Look at what China
02:35did this week. How much are they up? I'm losing track. One of their biggest weeks ever.