The Gilmo Report

June 16, 2021

June 16, 2021
Today’s action after the Fed meeting nicely encapsulated the hot mess that this market has become. The Fed apparently had nothing encouraging to say to the markets today when they released their latest policy announcement. In classic Orwellian fashion, Fed Chairman Jay Powell did try to strike a positive tone with, “The Fed is making progress toward its inflation goals.” Translation:... Read More
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June 13, 2021

June 13, 2021
CPI inflation came in at a 13-year annualized high of 5% on Thursday morning, but as I discussed might occur, the market rallied on the belief that inflation will now begin to cool down. This view was also aided by the fact that 1/3rd of the CPI gain was due to rising used car and truck prices. Stuff stocks, homebuilders, and financials were slammed while buyers piled into NASDAQ... Read More

June 9, 2021

June 9, 2021
All eyes will allegedly be on the latest Consumer Price Index report slated to be released tomorrow morning, exactly one hour before the opening bell. Expectations are for a hot 0.4% to 0.5% monthly number which, for those able to multiply, figures out to 4.8 to 6% annualized inflation. How the government calculates inflation, however, has been a sleight-of-hand trick since the Reagan years... Read More

June 6, 2021

June 6, 2021
The Fed announced on Wednesday evening that it would begin selling the corporate bonds and bond ETFs it bought last year to allegedly keep the corporate bond market functioning. That was taken as a sign that the Fed was doing just a little bit more than thinking about thinking about tapering, and high-PE NASDAQ names were pummeled in response, sending the NASDAQ Composite Index gapping below its... Read More

June 2, 2021

June 2, 2021
This week has so far seen the market stall and churn, with perhaps the best strategy being long oil stocks after buying them last week as they all mostly gapped higher yesterday on a positive OPEC report. Most of the patterns weren’t screaming buy at that time, however. The only way to play the move yesterday would have been to buy them Friday or jump on them early in the day yesterday... Read More

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