The Gilmo Report

September 29, 2019

September 28, 2019

This remains the most bizarrely news-fixated market I’ve ever seen in my 28-year investment career. The past week’s trading was marked by a great deal of volatility, all due to news. Hints from the President that the U.S. and China were “closer to a [trade] deal than you think” had the indexes rallying earlier in the week.

This was countered by news about impeachment proceedings against the President. On Friday, the news flow became a tornado as initial cooing from the China Trade Minister had the indexes up early in the day, but this was instantly reversed by news that the Trump administration was considering limiting investor flows into China, including de-listing Chinese stocks from U.S. exchanges.

An attempt by the NASDAQ Composite Index to retake its 50-dma after dipping back below the line on Thursday failed miserably on Friday. The index reversed at the 50-dma on higher volume as it broke to a lower low. On its face, the action is bearish.

 

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