The Gilmo Report

May 8, 2022

May 7, 2022 4:56 pm ET

I have written many times before that in this crazy environment the market often does not remember what it did the day before. In other words, what the market does on any given day does not necessarily serve as a reliable indicator of what it will do the next. We saw a first-hand example this week when Wednesday’s wild upside romp following the Fed policy announcement melted into an even wilder reversal on Thursday.

Given that I had taken long positions based on undercut & rally set-ups in certain stocks such as miners (see my Monday blog post) I was looking for at least another up move on Thursday. I should know better, and while the market allowed for some quickly profitable sells near the open, the set-ups quickly pointed back to the short side on Thursday morning.

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