The Gilmo Report

November 11, 2018

November 10, 2018

My career as an oddsmaker ended abruptly on Friday as the nascent follow-through day, which I gave better than 50/50 odds of working, failed. Of course, I’ve said many times before, I am not a believer in follow-through days as a mindless “all clear” signal to go piling headlong into stocks. As I noted in my last report, the time to be thinking about the long side was before the follow-through day, when the typical long set-ups off the lows were in full view.

The Dow Jones Industrial and the S&P 500 both suffered distribution days on Friday. This comes two days after Wednesday’s so-called follow-through day and theoretically means the follow-through has failed. To me, this is somewhat moot, since I don’t pay attention to the follow-through day to begin with. From my perspective, there is nothing to consider a failure – it all depends on what is going on with individual stocks.

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