The NASDAQ Composite Index cleared the 10,000 level for the first time in history, building on what has been a somewhat surreal but still playable market rally off the March lows. What this market has done is prove out my alt-currency rally theory where infinite QE turns stocks into alternative stores of value.
While the index cleared to all-time highs the action did show some high-volume churning thanks to today’s Fed meeting. Breadth was negative on the NASDAQ, providing a stark divergence to the continued upside streaks in big-stock alt-currency names.
In the alt-currency environment the market is led higher by the alt-currency generals, so to speak, which today consist of primarily the Fantastic Five, Apple (AAPL), Amazon.com (AMZN), Alphabet (GOOG), Facebook (FB), and Microsoft (MSFT). There are other players, of course, but there is a reason why these five take up nearly one-quarter weighting in the S&P 500 Index.
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.