The Gilmo Report

December 17, 2019

December 17, 2019

Riding the wake of last week’s trade news and weekend “news” regarding Chinese pledges to buy $200 billion worth of stuff from the U.S., the rally has stayed alive. But the action has been less than robust as the indexes have mostly churned around their highs over the past two days.

The NASDAQ Composite Index shows the basic price action here with two narrow price range days where the indexes closed mid-range or lower on above-average volume. Is this churning action indicative of an impending pullback, or tight action indicative of further highs?

From an index point of view, this is tough to call, but as always, I simply defer to and rely on the individual stock set-ups. In most cases, leading stocks are getting further extended and are out of buying position, so the potential for pullbacks, at least in individual stocks is rising.


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. ©2008-2019 Gil Morales & Company, LLC. All rights reserved.