As the market keeps extending its rally, I remain wary of a meaningful pullback, but so far, the market has continued to zombie-walk its way to new highs. The trend is persistent enough to also bring up the possibility of a parabolic sort of resolution, that is a blow-off move higher.
I characterize the current rally as a zombie-walk because of the uneven action on the way. High-volume stalling and churning and high-volume sell-offs may knock the indexes back a step or two, but eventually they emit a derisive grunt and keep marching onward and upward.
We can see the stalling and churning action in the daily chart of the NASDAQ Composite Index, the leading major market index. That action occurred yesterday and last Wednesday but constituted little more than a stumble for the index as it pushed to all-time highs today on lighter volume.
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
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. ©2008-2020 Gil Morales & Company, LLC. All rights reserved.