The Gilmo Report

May 2, 2018

May 2, 2018

The market has remained in the chop zone, with much of the action being dictated by the outcomes of big-stock earnings reports. On Monday, things looked to be starting out with a bang on the back of a strong earnings report from McDonald’s (MCD). But, as I tweeted early in the day, the gap-up rally looked like it could simply serve as the peak of a fourth right shoulder in a possible overall head and shoulders formation that has been “in process” since the end of last year.

That turned out to be the case as the stock quickly reversed the next day and broke back below its 200-dma this morning. It moved lower all day and finally ended up on top of the confluence of its 10-dma and 20-dema. The 50-dma is another 1% lower at 159.06, so we’ll see if Mickey D’s ends up taking that moving out as well on the way down.

 

GR050218-MCD

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. ©2008-2017 Gil Morales & Company, LLC. All rights reserved.