The Gilmo Report

September 9, 2020

September 9, 2020 6:21 pm ET

Humpty Dumpty fell off the wall last week and bounced twice off the 50-dma as the NASDAQ Composite Index logged an instant 10% correction in just three days. All the king’s horses and all the king’s men assembled this morning to try and put Humpty Dumpty back together again as the indexes caromed back to the upside.

 

 

All we know for sure is that we now have a sharp, ugly break off the peak on heavy selling volume and that numerous leading stocks have broken down severely. In this market, however, down big on volume can just as easily resolve to the upside as it can to the downside, so clarification can only be gained by evaluating the situation on a stock-by-stock basis going forward. For now, the yellow caution flag is waving in our faces, to be sure.

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. ©2008-2020 Gil Morales & Company, LLC. All rights reserved.