The Gilmo Report

August 1, 2018

August 1, 2018

I wasn’t looking for an upside opening on Monday morning, but a brief upside pop to start the week gave short-sellers a nice opportunity to hit the short side of the market. As I indicated to members in my Sunday afternoon video report, I would be looking to short any upside market open the next day. And so, we opened to the upside on Monday, giving short-sellers an easy lay-up to enter short positions, and the market then promptly reversed sharply to the downside.

The move took the NASDAQ Composite Index below its 50-dma, but the NASDAQ 100 Index, which had been the epicenter of selling over the past few days, found support at its 50-dma. This set up a logical context for a reaction bounce. We got that yesterday, thanks to some news out of Bloomberg regarding the alleged restarting of trade talks between the U.S. and China.

 

GR080118-$NDX

The rest of this report is available for Gilmo Report Members only.
The full report will be available 45 days after it is posted. For immediate access: login or subscribe

Gil Morales & Company, LLC (“GMC”), 8033 Sunset Boulevard, Suite 830, Los Angeles, California, 90046. GMC is a Registered Investment Adviser. This information is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to GMC, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Gil Morales & Company, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2008-2018 Gil Morales & Company, LLC. All rights reserved.