The Gilmo Report

April 22, 2018

April 22, 2018
In my Wednesday report I noted the low-volume floater rallies we were seeing in big-stock NASDAQ names. As I pointed out, it made the market vulnerable to a pullback. We did indeed end the week with two days of downside distribution in the major market indexes, all of which dropped below their 50-dmas. The NASDAQ Composite Index broke decisively below its 50-dma on Friday,... [more]
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April 18, 2018

April 18, 2018
The market found the necessary inspiration to abandon its sluggishness in a strong earnings report from (Netflix (NFLX) Monday after the close. This led to a strong gap-up open yesterday that sent the major market indexes back up through their 50-dmas. Big-stock NASDAQ names, moving in sympathy to NFLX, put the NASDAQ... [more]

April 15, 2018

April 15, 2018
The NASDAQ Composite Index got as far as its 50-dma on Friday at the open on another gap move to start the day, but reversed to close down on lighter volume. Note that the index also broke below the lower trendline of the ascending wedge that I noted in a tweet on Thursday. Resistance at the 50-dma is logical, and the fact that it came on light volume amid a lot of nervousness... [more]

April 11, 2018

April 11, 2018
I generally find follow-through days to be somewhat useless when it comes to determining the future direction of the general market. In a market like this, where news instability can create sharp and sudden swings in either direction, it’s difficult to tell whether a follow-through is real or just a function of a volatility twitch. Ultimately, the action of individual stocks tells the full story,... [more]

April 8, 2018

April 8, 2018
The market ended the week the way it began the week, with a big sell-off on more tariff news. While Monday’s sell-off was brought on my tough talk from the Chinese, Friday’s sell-off came after President Trump asked for consideration of another $100 billion in tariffs against China. This appeared to overshadow a weak jobs number of 103,000 vs. estimates of 175,000. And so, the trade war of words... [more]

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