The Gilmo Report

July 4, 2018

July 4, 2018

The first half of a truncated Fourth of July holiday trading week has not typified what I would call quiet holiday trading. It started out with a sharp futures-led gap-down open on Monday that saw the indexes levitate off their lows in an apparently bullish reversal to close up on weak volume. But appearances in this market can be deceiving.

Tuesday, which was a short trading day ahead of the July 4th holiday on Wednesday, was anything but quiet. The indexes started the day in opposite fashion to Monday’s gap-down open by gapping up at the opening bell. That rally slowly melted away until the final hour when things came loose and the indexes reversed sharply.

The NASDAQ Composite Index, which had successfully tested and bounced off its 50-dma on Monday, ended Tuesday in the red. Volume was lighter due to the shortened trading session, but on a prorated basis would have come in higher than Monday’s volume. As it had for the previous five trading sessions, the 20-dema again served as near-term resistance for the index.

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.