The Gilmo Report

June 30, 2019

June 29, 2019

With the Fourth of July holiday coming up this Thursday, perhaps it is fitting that the market put on a little fireworks show of its own. That may be the case when we open on Monday after news Friday night that the U.S. and China agreed to resume trade talks and President Trump announced a lifting of the ban that prevents U.S. technology companies from selling to Chinese telecom giant Huawei.

The sudden shift in the market soap opera plot again brings home the point that I’ve made many times. This market is subject to sudden volatility and changes in direction courtesy of a constantly shifting news flow. But I was already picking up signs of this shift on Thursday as my blog posts of that day and my video report that afternoon indicated.

As I noted in those reports, the short side had been nicely profitable to start the week out but had gotten long in the tooth by Thursday. I also noted that on Thursday the market had a wonderful opportunity to sell off Thursday when Chinese President Xi issued a list of seemingly impossible conditions that must be met before the Chinese would return to the trade negotiating table.

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