The Gilmo Report

July 3, 2019

July 3, 2019

The gap-up in stocks seen as benefiting from the weekend trade news mostly turned in a shortable gap-up, or SGU, affair. This was the litmus test I was looking for that would determine how real the gap rally was, at least in the short run. Most of these stocks, however, opened high and finished low in reversals that looked rather bearish.

For example, one of the biggest upside streakers on Monday morning was Acacia Communications (ACIA). The stock opened at 50.71, and within the first ten minutes of trade reached a peak of 54.66 before reversing and steadily declining from there. It ended the day with a print of 50.44, below where it opened and back underneath the 50-dma.

 

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