The Gilmo Report

January 16, 2022

January 16, 2022
The NASDAQ Composite Index retested the 200-day moving average on Friday and held up on about even volume. The wedging rally off the Monday lows and the 200-day line earlier in the week stalled and reversed at the 10-day simple and 20-day exponential moving averages on Thursday, setting up Friday’s retest. For now, the market remains in a correction, although the NASDAQ’s position... Read More
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January 12, 2022

January 12, 2022
I was looking for the NASDAQ Composite Index to test of its 200-day line as I wrote over the weekend, and that’s precisely what we saw on Monday. After breaking below the line early in the day, the index was able to hold support on a shakeout at the 200-day line and then rally to post an undercut & rally (U&R) move through the two prior December lows. That set off... Read More

January 9, 2022

January 9, 2022
The market found a reason to pause on Thursday as the S&P 500 Index found support at its 50-day moving average. Given that many of our short-sale target names, primarily the Ponzi-Stocks, were quite oversold by Thursday morning, the bounce was logical in my view. However, it lacks vigor as even a weak jobs number on Friday, with the Bureau of Labor Statistics reporting 199,000... Read More

January 5, 2022

January 5, 2022
The New Year has been marked by a stark divergence between lower-PE stocks, where buyers have swarmed, and higher PE and PE-expansion names in the tech/growth area that have taken heat over the past three days. This is consistent with my view that higher interest rates will put pressure on these richly-valued stocks. In particular, what I refer to as Ponzi-Stocks are most vulnerable as... Read More

January 2, 2022

January 2, 2022
A low-volume market melt-up during the holidays where participation is light and there are no eager sellers to be found always provides its own brand of entertainment ahead of the New Year’s Eve festivities. The lack of volume also brings up the possibility of a natural air pocket developing when participation levels return to normal, at which point sellers may decide to frolic into the... Read More

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