The Gilmo Report

May 19, 2019

May 18, 2019

The market’s wild and woolly action did not let up all week long. The NASDAQ Composite and S&P 500 Indexes both regained their 50-dmas on Thursday as they got right back to where they started the week. The three-day rally was greeted on Friday with a gap-down open, and the market went into the spin-cycle from there.

The indexes rallied off their gap-down lows and turned positive within the first 90 minutes. For a while, the upside reversal in the face of an opening gap-down looked quite bullish. But as is so often the case in this market, things are not always how they appear.

The rally faded, and the indexes steadily deteriorated from there, with the Dow closing down -0.38%, the S&P 500 -0.58%, and the NASDAQ Composite taking the brunt of the selling with a decline of -1.04%, all on higher volume. In the end, a three-day rally results in a higher-volume reversal at the 50-day in both the NASDAQ and the S&P 500.

 

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. ©2008-2019 Gil Morales & Company, LLC. All rights reserved.