The Gilmo Report

July 14, 2019

July 13, 2019

The major market indexes have continued to reach for new highs. The S&P 500, Dow Jones Industrials and NASDAQ Composite Index all posted new closing highs. Volume was light, however, but with the perception that the Fed is set to ease and continue easing over the next 2-3 meetings, sellers do not seem inclined to swarm the market.

 

 

On Friday, the NASDAQ and the NASDAQ 100 nearly reversed into the red after an initial upside move. Well before that occurred, I was already picking up buy signals on the five-minute 620-chart of the ProShares UltraShort QQQ ETF (SQQQ). As I discussed in Thursday’s GVR, the low-volume breakouts to new highs in the indexes may imply some risk of a pullback, and one lower-risk way to play that, should it occur, is with the SQQQ or some other inverse index ETF using the 620-chart as a timing tool.

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