The Gilmo Report

June 20, 2018

June 20, 2018

My last report discussed the idea of using sell-offs related to any escalation of the current U.S.-China Trade Tiff as potential entry opportunities in favored stocks. That strategy worked well on Monday right off the open, but the flavor of the pullback changed slightly on Tuesday. Stocks kept selling off, most of them down to deeper areas of support, such as their 20-dema’s.

In my view, this sort of action creates trading opportunities, but I would also remain wary of where this market is headed from here. Many leading stocks remain extended, and some have become even more extended, although have been quite playable on the long side. Case in point would be Netflix (NFLX), which pushed right up through the $400 Century Mark yesterday on strong volume.

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