Things became quite extended to the upside going into yesterday’s close as many of our favored long names have been jacking higher. But as is often the case in this market, just when things look about as good as they can get the market likes to pull the rug out on investors.
That’s what happened this morning as the indexes gapped down at the open and just kept moving lower all day, save for a couple of brief churning periods. In the process, the NASDAQ Composite Index finally closed, no, make that “blew,” below its 10-day moving average on heavy selling volume.
The selling today struck me as forced selling or abnormal liquidation (choose one, or both) as money rushed for the exits. Leading stocks of all stripes and colors were summarily and indiscriminately shot.
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
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. ©2008-2017 Gil Morales & Company, LLC. All rights reserved.