The Gilmo Report

April 11, 2018

April 11, 2018

I generally find follow-through days to be somewhat useless when it comes to determining the future direction of the general market. In a market like this, where news instability can create sharp and sudden swings in either direction, it’s difficult to tell whether a follow-through is real or just a function of a volatility twitch. Ultimately, the action of individual stocks tells the full story, and as I noted in last night’s special video report there wasn’t a large number of stocks setting up on the long side.

In addition, the index action wasn’t all that powerful, despite qualifying as a follow-through day across the board.

However, there were some favored names hanging along support, which at least created some possible lower-risk entries. Some of these, as we’ll see, had a decent day today. But with the trade war of words simmering down, a new flow of news took up the slack. This came in the form of an impending strike against Syria as punishment for again using chemical weapons against its own people. Overnight, futures markets were rattled and we were treated to yet another morning gap move, this time to the downside.

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