The Major Indices are Closing in on 2023 Highs

Tom Gentile

Posted in

By: Tom Gentile
December 6th, 2023

4 mins read

Originally published via our newsletter previously. Subscribe for early access!

The path of least resistance seems to be to the upside in the markets.

That could be because of a number of factors.

  1. The latest reading on GDP showed it rose 5.2% in the third quarter.  It came in higher than expected as it was previously anticipated coming in at 4.9% annualized.
  2. An anticipation of the Fed NOT raising rates the remainder of the year.
  3. End of year window dressing.  It may be institutions are acquiring more of the high growth, popular, maybe the ‘Magnificent 7’ stocks to show prospective new clients they should put their money under their management.
  4. That last point may account for the retail  traders operating under FOMO: Fear Of Missing Out.  They want to get in on these price runs before its too late and that extra buying could be helping stock price continue to crank higher.

The markets end up mixed as the Dow was slightly higher while the S&P500 and NASDAQ were slightly down.

Today two Fed governors gave their opinions on the Feds course of action for interest rates with one, Christopher Waller, saying  (and I paraphrase),  if inflation continues to cool consistently, there was “no reason” to insist interest rates should stay high or really high.

Another Fed governor in a Yahoo finance article said, “My baseline economic outlook continues to expect that we will need to increase the federal funds rate further to keep policy sufficiently restrictive to bring inflation down to our 2% target in a timely way,”.

Markets aren’t fans of uncertainty and this differing view on rates didn’t help today.

Market in Focus: Invesco QQQ Trust (QQQ)

The Q’s is an ETF that tracks the NASDAQ 100.  One can use their broker or charting websites to chart the NASDAQ Composite as a whole if they want.

The chart below is the Year-to-Date view of the Q’s and as you can see it is at highs for the year.

QQQ PowerShares 2023-01-03 to 2023-10-24

The below view is an image showing how close the Q’s are to their all-time highs (or at least highs in the last 999 days).

QQQ Chart Showing How Close to All Time Highs

A place to start finding trading ideas might just be in Tech.

Tools and Observations

Screenshot of Tom's Tools Correlation Analyzer Button

Correlation Analyzer is a tool within my suite of tools, that can see how much as a percentage one security correlates to another.

One reason one would do this is to see how closely a stock compares to an overall index or ETF.

If one wants to choose a stock that trades with the wind in its sails, so to speak.  If the index is trading higher and one wants to trade or invest in a stock that should perform similar to that index, correlation analyzer could help find those.  Here is what part of the page looks like in the tools.

Image 7

List 1 is the List one wants to select to see how it or stocks in that Index or ETF correlate to List 2.

List 2 is the Index / ETF one selects to run the correlation.

If you want to find stocks in the SPY that move up and down with the QQQ ETF, enter QQQ in the List 2 text box and select S&P 500 Optionable in List 1.

 Click highly correlated in Correlation Types and have Stock Price selected in Correlation Data Types.

Click Analyze.

Here is the first 10 stock results listed by highest correlation to lowest from left to right.

Image 8

This is not a list for one to go trade as the purpose wasn’t to show a results list to work off of, but rather an end result list showing what a results list looks like when one does this exercise.

Subscribers feel free to run whatever correlations you want and always work with your broker / financial professional as to what stocks or ETF and or the options trades on them are suitable for one’s portfolio.

Tom Gentile
C1P: Chief 1-Percenter


Stock and options trading has large potential rewards, but also large potential risk.

You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.

This is neither an offer to buy/sell/ or recommend a particular stock or option.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Disclaimer of Warranties and Liabilities Tom Gentile and TomsTradingRoom, LLC including employees, consultants, and editors (“Publisher”) cannot and do not warrant the completeness or accuracy of the content found in our areas, or its usefulness for any particular purpose.

Tom Gentile and TomsTradingRoom, LLC also make no promises that our content or the service itself will be delivered to you uninterrupted, timely, secure, or error-free. Under no circumstances will Tom Gentile and TomsTradingRoom, LLC be liable for direct, indirect, incidental, or any other type of damages resulting from your use or downloading of any content on our site.

This includes, but is in no way limited to, loss or injury caused in whole or in part by our negligence or by anything beyond our control in creating or delivering any portion of Tom Gentile and TomsTradingRoom, LLC.

You are agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that Tom Gentile and TomsTradingRoom, LLC will not be liable for any investment decision made or action taken by you, or others based upon reliance on news, information, or any other material published by Tom Gentile and TomsTradingRoom, LLC.

Tom Gentile and TomsTradingRoom, LLC relies on various sources of information that we believe to be accurate and reliable. However, we make no claims or representations as to the accuracy, completeness, or truth of any material contained on our site.

Tom Gentile and TomsTradingRoom, LLC are educational portals, providing content for educational and informational purposes only. Neither Tom Gentile nor TomsTradingRoom, LLC are a broker/dealer. Investors need a broker to trade stocks and options and must meet certain requirements. All securities, futures, and investments data and ideas are offered to self-directed investors. All prices in USD unless noted otherwise.

A full disclaimer can be found here:

Sign Up Now for Free Education!