Nasdaq sees best trading day since May

Market Sentiment and Correction - The market experienced a strong six-month move, leading to overstretched conditions and euphoria in some areas, but has since reset [3] - Meme stocks are down approximately 40% since the October highs, and the S&P 500 experienced a 5% correction, the first since April [4] - The NASDAQ technology sector was in the most oversold condition since April [5] - A mini correction of 5% drawdown peak to trough is considered over [13] Interest Rate and Fed Policy - The odds of a Fed rate cut in December increased to around 70%, up from 33% on Friday [1] - The S&P 500 peaked the day of Powell's comments pushing back against an automatic December rate cut [8] - The market is pricing in rate cuts again, which is helping the market [9] - The consensus is that the Fed will ultimately cut rates in the next six to twelve months [10] - A potential danger for the market in December is the market shifting Fed funds futures for a cut in December to close to zero [15] Sector Analysis and Investment Opportunities - The technology sector is expected to move higher, supported by stronger earning trends than the overall market [5] - Healthcare sector seems to have bottomed out and is underowned and priced for pessimism [6] - Healthcare exhibits healthy earnings trends across medtech tools, life science, and big pharma [7] - Healthcare is anti-correlated to AI trades, providing portfolio diversity [7] Market Outlook and Catalysts - The market is expected to rally into the end of the year and the beginning of next year [13][16] - Earnings broadening out across other sectors and continued power and productivity advancements around AI are expected to drive the market [13] - The Fed cutting rates into next year is seen as a catalyst for market growth [14] - Historically, November 20th is a bottom before a seasonal late-month rally [11]