The Fed held rates and the market barely moved, then after the bell Alphabet fell about 9% and Microsoft rose about 3% on their earnings. Garmin dropped almost 6% today, and I would rather catch it a little lower, see that free trade idea below.
What caught my eye on Wednesday
The Fed kept rates where they are today. The market barely blinked: in the half hour after the 2:00 p.m. statement, the S&P 500 never moved more than 0.2% either way, and it closed just 0.1% above where it stood right before. Small caps wobbled more, then finished the past week up 1.7%, while everything else on this chart ended within 0.6% of where it started.
Alphabet and Microsoft both reported right after the 4:00 p.m. close, and their stocks went opposite ways.
Microsoft went the other way.
Tonight's free trade: GRMN
How to place it: enter a BUY LIMIT for GRMN at $266.58, good for the day only - if it never fills, it cancels itself and there is no trade. We sell for Monday, November 2. Members get the exact profit target on the sheet the evening after a fill, a sell limit for the next session only, and that sheet also says whether the close on the day you are filled hit its stop. Do NOT rest a stop order for this one: its stop counts only on the close of the day you are filled. An intraday dip is normal and is not an exit.
How Wide Mean Reversion works
Liquid stocks outside the Nasdaq-100 that are still in long-term uptrends sometimes take a bigger-than-usual one-day drop. We rest a buy limit beneath the market for the snap-back. We get out fast: a profit target the session after the fill, or the open two sessions after it. Built in 2026 and tested back to 2001.
One thing worth knowing
Waiting for a lower price is where this kind of dip buy earns its money. In our test, buying at the next morning's open made +0.13% a trade on average. Buying only at our lower limit price made +1.12%, more than eight times as much.
Would you take this one? Hit reply and tell me how you'd play it. I read every reply.
Below: the rest of tonight's ideas, the exact orders, and how we're managing the open positions.