The Gilmo Report

July 8, 2018

July 7, 2018

In the face of bearish action on Tuesday, the market once again proves why one simply cannot take a rigid bullish or bearish position at any given point in time. The reality of this market is that there is still plenty of liquidity to drive a herd of algos in either direction, and one must be ready to move with the action as it unfolds in real-time.

Not that it is always that easy. This market loves to throw investors wide-arcing curve balls, and those looking for trending action in the short-term are still left in uncertain territory. Friday’s jobs number started out looking like a bust as the futures rolled lower in pre-open trade, but the indexes soon found their feet and launched higher.

The NASDAQ Composite Index, which had regained its 20-dema on Thursday, continued to push higher. I tweeted on Thursday that investors should have a plan ready just in case the NASDAQ held above and continued beyond its 20-dema. With the continuation further above the 20-dema on Friday, the index has now filled the gap of June 25th, and is within 2% of its all-time high.

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