The Gilmo Report

December 9, 2018

December 8, 2018

This may have been the craziest market week we’ve seen in a while, but we’ve seen so much wild action since the October top that it’s getting hard to keep track of it all. All we know for sure is that the week started out with a big, news-related gap-up after President Trump and Chinese President Xi apparently came to some sort of cease-fire understanding on the ongoing trade war. That didn’t last long as the market stalled on Monday and then plummeted on Tuesday.

A brief respite for a day of mourning, whether for Tuesday’s bulls or for a former U.S. president, on Wednesday led to another gap-down on Thursday, with the Dow Jones Industrials nearly duplicating its 800-point dive on Tuesday before suddenly rallying to make up all but 77 points of its prior intraday decline. The initial morning gap-down break was caused by news late on Wednesday that the CFO of Chinese telecom giant Huawei had been arrested in Canada at the request of the U.S. Justice Department.

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