The Gilmo Report

May 29, 2019

May 29, 2019

The sloppy market action continued right into the new trading week as an early gap-up open yesterday reversed into an ugly sell-off in the final two hours of trade. The Dow closed below its 200-dma for the second time in May. This all led to a gap-down open this morning, but the S&P 500 and the NASDAQ Composite Indexes eventually found and held support at their 200-dmas.

 

 

I would emphasize that I characterize today’s action as support at the 200-dmas, but not necessarily supporting action at the 200-dmas. We’ll see how this plays out in the coming days.

Every group in this market has been beaten-down as of late, and if one is looking for long ideas, it is now mostly a market of individual stocks. With most leading and formerly-leading names coming off some distance from their highs of a month ago, one also has to be selective in choosing short-sale targets. Names that are deeply extended on the downside are susceptible to sharp reflex rallies at this stage of the game.

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.