The Gilmo Report

June 14, 2020

June 13, 2020 11:00 pm ET

Wednesday’s report turned out to be only too prophetic as the market split wide open the very next day. The Big Three market indexes all slid more than 5% with the Dow leading the way with a -6.90% bust. The small-cap Russell 2000 Index was hit even harder, plummeting -7.58%.

The chart of its proxy, the iShares Russell 2000 ETF (IWM), shows that the Russell 2000 was already weak as I noted in Wednesday’s report. At that time, it had rolled below its 200-dma, and after Thursday’s big price break remained below its 20-dema on Friday.



An early gap-up rally looked to be in jeopardy twice on Friday before the NASDAQ Composite Index was able to find its feet and close positive on the day. After Thursday’s higher-volume price break off the peak, the index essentially bounced back and forth between its 10-dma and 20-dema on lighter volume. This remains a fluid situation in this current position with the potential for lower lows coming into play.

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. ©2008-2020 Gil Morales & Company, LLC. All rights reserved.