The Gilmo Report

August 14, 2019

August 14, 2019

Untradeable macro-risk. The phrase makes more sense the longer this market trades. This is a market that can’t be trusted, and the action over the past two days poignantly highlights that fact. News yesterday that China was agreeing to possible phone talks with the U.S. over trade in a couple of weeks and the delay of $80 billion worth of Chinese tariffs to December 1st lit up the news algos, and the market rocked to the upside.

Some might have tried to pitch you on the idea that yesterday was a so-called follow-through day. In this market, however, where traditional institutional investors take a back seat to the machines, the concept is quaint at best. Yesterday’s rally didn’t last long as the indexes gapped down hard today at the open, and the NASDAQ Composite and S&P 500 Indexes both peeled away vigorously from resistance at their 50-dmas.

 

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