The Gilmo Report

October 17, 2018

October 17, 2018
I wrote over the weekend that the fat part of the short-selling game was likely over with, at least for the near-term. Thus, there was no point in pressing the short side coming into the new trading week. Given that the indexes and many busted formerly leading stocks became wildly oversold by the time last Friday’s closing bell sounded, we have been treated to a normal, natural oversold reaction... [more]
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October 14, 2018

October 14, 2018
The velocity with which the market and leading stocks have fallen this past week has been quite astounding. It is reminiscent of the action in early February, which featured the Dow Jones Industrials Index’s first-ever 1,000-point downside close. These days, however, a drop like that is only about 5%, nothing in comparison to the May 6, 2010 Flash Crash that saw the Dow decline... [more]

October 10, 2018

October 10, 2018
The indexes certainly appeared as if they might be in position for some kind of reaction rally as of last Friday’s close. But, despite the oversold condition of the indexes and many leading stocks, oversold simply became more oversold. Most of these price breaks are something to behold, to be sure. Leading stocks in most cases haven’t even been able to hold undercut & rally moves... [more]

October 7, 2018

October 7, 2018
The weakness in bonds earlier this past week combined with numerous divergences as discussed in Wednesday’s report came to fruition on Thursday as the indexes broke hard to the downside. The instigator was alleged to be spiking interest rates. The 10-Year Treasury Yield ($TNX) moved to its highest levels since the financial crisis of ten years ago, pegging at 3.225% on Friday.   ... [more]

October 3, 2018

October 3, 2018
This has been a most interesting week for the market, with cross-currents aplenty. On Monday we were treated to a massive upside gap-up open after the U.S. and Canada had agreed to terms that would create the so-called U.S.-Mexico-Canada-Agreement, or USMCA for those with a fetish for acronyms. By the close, most of those gains evaporated, and the NASDAQ Composite Index posted an... [more]

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