July 20, 2019

Following last week’s concerted push to new record highs, the major indices had a quiet and slightly bearish week in typical summer trading conditions. Trading activity was light throughout the week, even though we saw fireworks in pre-market trading and in the opening hours due to corporate earnings. Quarterly earnings reports provided mainly positive surprises with regard to earnings, but a lot of companies lowered their guidance for the next quarter. The financial sector, in particular, saw mixed price action in the wake of the releases. Fed Chairman Jerome Powell reiterated the Central Bank’s dovish stance, and even though the domestic economy continues to expand, the Treasury market is still “pricing in” a rate cut this month.

 

After multiple consecutive stronger sessions, the GorillaTrades portfolio finished weaker on Friday, along with the broader market. Of the GorillaPicks that fell, most lost just 1%-2% or less, and not one dropped more than 2%-3%. On the other hand, Post Holdings Inc. (POST) led among the winners, gaining 2.7%. Thus, 58 of the 74 confirmed GorillaPicks in the GorillaTrades portfolio now hold unrealized gains, including 32 with double-digit gains. And this number is very deceiving because a majority of the confirmed GorillaPicks that are lower are down by just 1%-2% or less! Twelve different GorillaPicks hold 20%-26% unrealized gains each, and eight more hold 30%-38% gains! In addition, 43 of the GorillaPicks have achieved their first target!