The Gilmo Report

May 26, 2019

May 25, 2019

The market remains a gap-up, gap-down affair with a large portion of each day’s index moves taking place overnight. The overnight moves tend to be sharp, with the ensuing regular-session trade mostly spinning around in circles. NASDAQ Composite illustrates this quite well with a number of spinning tops in the pattern over the past week.

That said, I blogged on Thursday as we headed into the final hour of trading that members should be on the alert for a possible reflex rally given that the NASDAQ Composite was undercutting its prior 7627.22 low of two Mondays ago. That turned out to be prophetic as the index rallied to close just above that low, printing 7628.28 at the closing bell.

On Friday, the index gapped up with the market on news that President Trump was softening his stance on the Huawei situation, and that he would meet with Chinese President Xi at the upcoming G-20 meeting. Reports from China allegedly indicated that there are no current plans for such a meeting. So, more of the same market-moving drivel comprised of unfounded suggestion, insinuation and allusion. 

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