Client Portal

WAT-1.57%  Waters is the best performing of all SPX names today, up a whopping +17.5% on its FY Adjusted EPS Forecast & it beat estimates. Note, patterns of this sort tend to be very bullish on an intermediate-term basis, but WAT would be more appealing on a risk/reward basis following some consolidation in the month of November. ( $355-$365) The act of gapping up above all prior highs going back since 2021 is typically a very constructive technical sign and i expect a full retrace back to 2021 peaks just over $428.

CPI and PPI data resulted in some volatility this week for Equities, but largely have locked in the outcome of next week's Fed meeting with a 25 bp cut, if the rate cut bets of the Swap market positioning is any guide. Whether or not we see a subsequent 50 bp the following meeting and Rate cuts follow the markets 200 bp into next June is open to argument, but for now, economic data has stabilized somewhat in the last month, and Treasury yields seem to be taking their cue more from labor mkt data than inflation. Equities are mildly higher today, thanks to 6 positive sectors out of 11 and breadth is around 2/1 positive. Yet, its the slightly negative move out of Technology (A-1.04% , MU-4.45%  LRCX-3.37% , STX-2.28%  big laggards) and Healthcare weakness (MRNA4.80% , WAT-1.57% , TMO-0.98% , PFE1.47% ) thats causing benchmark indices not to be higher.

WAT-1.57%  Waters corp, the Life Science & Diagnostics stock, is one of the best gainers in the SPX today, higher by 5% to$275.38 as of 3:15 EST- As can be seen on monthly charts going back 20 years, the entire consolidation from 2021 has proven to be minor and not indicative of a major change of trend- However, to verify a "change" of trend for the better, it's important that WAT make at least consecutive weekly closes back up above$300 which would exceed the downtrend over the last two years- In this case, that would be convincing that the stock had put in a trading low for this year & could trend back to new high territory- As can be seen WAT has a stellar long-term trend despite the churning over the last two years. Volume today, despite its 5% rise, is less than normal and WAT lies right by its declining 200-day m.a.- therefore, more needs to happen to indicate a change of trend. On any pullback into December, 231.90 will need to hold, which signifies meaningful downside support. Bottom line, there will be reasons for optimism once this can reclaim$300. At present, this rise is encouraging but more needs to happen technically to have more faith