The Gilmo Report

June 2, 2019

June 1, 2019

The President helped to drive home my point that this remains a market plagued by an inordinate amount of news risk. This was demonstrated again Thursday in the after-hours when the President announced 5% tariffs on Mexico. These tariffs will go up by 5% every month that the Mexican government fails to act against the growing masses of illegal immigrants traveling to the U.S.-Mexico border through Mexican territory.

The futures immediately broke sharply to the downside, setting up a gap-down open on Friday morning. The NASDAQ Composite Index, along with the S&P 500 Index, gapped below its 200-dma. After a brief intraday rally where it attempted to rally back up to the 200-dma, the index closed near its lows for the day on heavy, month-end volume.

 

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