The Gilmo Report

October 31, 2018

October 31, 2018

Lower lows on Monday kept an ominous Halloween glow hanging over the market. But once again the market’s tendency to act like a cheap drunk who remembers nothing about what they did and with whom the night before took effect. A small gap-up open blossomed into a rally early yesterday, but the market then began to waver again, looking like a replay of Monday’s ugly action was in store.

But the market held its ground even after dipping into the red and rallied in classic oversold melt-up fashion into the close. This was a notable difference given the prior melt-down-into-the-close type of moves we have seen in recent days. Thus, the oversold, v-squared condition took hold and the indexes continued higher today as beaten-down stocks of every stripe finally bounced off their extreme lows.

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