The market continues to live up to my expectations. The movement on any given day is dictated by the news flow, and as I’ve warned would likely be the case, we’ve seen the indexes gap down and gap up depending on the latest trade news. This makes for a whip-saw environment that does not necessarily lend itself to investing but can be exploited on a swing-trading basis.
Today’s action was no exception. The futures started down hard on the NASDAQ side of things on news that a U.S. District Judge had ruled Qualcomm’s (QCOM) practices violate anti-trust law. But a big morning break overnight largely dissipated once Treasury Secretary Steven Mnuchin made a comment during Congressional testimony that it was “likely” President Trump would meet with Chinese President Xi at the upcoming G-20 meeting.
The NASDAQ Composite headed straight back up toward the UNCH line in a flash type of move on the comment, which was mostly just an unfounded insinuation given the use of the word likely. That move, however, ran into resistance near the UNCH line and the indexes reversed back to the downside.
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. ©2008-2019 Gil Morales & Company, LLC. All rights reserved.