Having been stopped out of his "long punt" in copper futures (which are, we remind readers, levered via margin and not a simple cash percentage loss of capital), world-renowned (for something) Dennis Gartman has issued his latest missive - ultimate contrarian call - advice... "we are sellers this morning of copper and buyers of crude oil, one relative to the other, with the problems in China weighing upon the former while crude has held impressively as other commodity prices have fallen." Crude oil longs beware... prepare to be Gartman'd.
April 1: Gartman explains why experience tells him to stay bullish on stocks.
April 7: 'Scared' Dennis Gartman: "Get out of stocks"
And here is what happened next...
Dennis Gartman Comes Out In Defense Of HFT: "They Do Indeed Have Better Quality Computers Than Do We"Submitted by Tyler Durden on 04/02/2014 15:10 -0400
Presented with no commentary and with lots of laughter as yet one more "expert" who has no clue what HFT actually is (and every clue about being the market's best contrarian indicator - see here and here and here and here) comes out of the woodwork with a "world-renowned" opinion. Again.... and Again.... and Again. Needless to say, Gartman opining in favor of HFT effectively seals the debate if the vacuum tubes should all be done away with this nanosecond.
Dennis Gartman, already humiliated beyond any hope of reputation salvage in the media, appears to be refocusing his keen talents and acute sense of extrapolating instantaneous market momentum 1 millisecond into the future, to a renewed direct exposure in the capital markets. And while hoping that market junkies have forgotten the epic disaster that was his last foray into ETF-land with ONN and OFF, Gartman today announced that he is now launching his signature shtick as a brand new ETF: gold... in non-dollar terms.
It is becoming more uncomfortable to make fun of Dennis Gartman's always incorrect calls (see here and here and here and here) than to watch Richard Simmons Obamacare commercials, but... well - it's just too funny.
Earlier, we debunked an alarmist Forbes story about halted cash transfer by PBOC decree, which was erroneous along various lines all explained previously, not in the least that the actual announcement had first appeared some three weeks ago. And despite the kneejerk reaction of some of our more fatalist readers and not to mention the general public, the reality is that China has more than enough real problems (Trust Equals Gold being at the forefront) and certainly does not need to add imaginary, made up ones, conceived only with the intention of generating conflated ad revenues through click-baiting headlines. Which is why we commend Forbes for, better late than never, pulling the story even without providing an explanation of how this story appeared in the first place. Because where the article once was, there is only a 4-0-Forbes now...
Just when you thought bizarro world couldn't get any, er, bizarrer, here comes - who else - Dennis Gartman, who is now long gold.... in crude oil terms.
Further, we shall recommend owning gold in terms of crude oil, buying the former and selling the latter in equal dollar sums. Further, to eliminate the impact fo the Brent/WTI spread from this trade, we’ll do half of the oil trade in WTI and half in Brent.
Gartman from November 19: "... the simple things of economic growth, I don't think there's froth whatsoever."
Gartman from just ten days earlier, November 8: "Now with the S&P forging a massive reversal to the downside, we not only must abandon being bullish we must become bearish... and very so.... Our bearish friends, having been wrong for so long, are now right; it is time to be bearish of stocks, while the time for having been bullish is now past... We trust we are clear. The game’s changed and when the game changes, we change.... We had heretofore consistently erred bullishly of simple things… of coal; of steel; of railroads; of ships and shipping… but we are not now."
This morning, like many other mornings in the last few months, precious metals prices are being pummeled lower in a vertical dumpfest (for no apparent sudden reason other than its opening time). What is ironic about this apparent lack of demand is that around the world, demand is extreme - and is most clearly evident in India, where thanks to government intervention, physical premiums push to new record highs yet do nothing to detract from Indians buying demand (as Reuters reports supplies of the precious metal disappear). Of course, the real reason why gold and silver prices have dropped since 10/28 is that none other than "the world renowned Gartman" went long again...
Just two weeks after Goldman's "Slam Dunk Sell," report, the price of gold is surging once again. Goldman's Currie (in direct opposition to BofAML's Curry) argument that post debt-ceiling, "... with significant recovery in the U.S., tapering of QE should put downward pressure on gold prices," seems like another round of wishful thinking as physical premiums for gold around the world surge to record highs and spot prices reach one-month highs. Of course, while Goldman had a few days of positive reaction after their call, it is none other than Dennis Gartman who provided the bottom-tick in the latest exuberance.
There is Whitney Tilson, there is Dennis Gartman, there is Bill Ackman, but when it comes to epic, blatant muppet genocide nobody, nobody in the history of Wall Street, can compare to Goldman's chief FX strategist Thomas Stolper. Nobody. "Trade Update: Closing long EUR/GBP after strong UK data offset other Sterling negative factors. We recommend closing long EUR/GBP positions for a potential negative return of 0.2%."
Yesterday, just as AAPL was plumbing its intraday lows ahead of its earnings announcement, and just as gold was about to break out to the upside (at least until Dennis Gartman turned bullish on the metal) we relayed a "rumor" suggesting that the most sturdy pair-trade of the past few months: the AAPL-Gold compression was Ben Bernanke's #timestamp for the day.
Rumor Bernanke is pitching the AAPL-gold compression trade
— zerohedge (@zerohedge) July 23, 2013
Sure enough, following yesterday's AAPL spike and today's gold take-down, Bernanke Asset Management can claim one more win in its impeccable recommendation track record.
To summarize, the SEC which admits it was clueless in analyzing the modern, fragmented market (yet which found definitively that the culprit for the May 2010 flash crash was Waddell and Reed, and nobody else, using what technology at the time, nobody knows), uses a platform developed by High Frequency Trading firm Tradeworx... to reach a conclusion that High Frequency Trading firms are innocent of every flash crash resulting from an HFT algo gone haywire...
Buy PHYSICAL Gold. NOW: The Discount of a Lifetime: Or Why You Must Abandon the Fake Paper Gold MarketSubmitted by Gordon_Gekko on 04/17/2013 07:00 -0400
It's time to go in for the kill. Buy as much physical Gold as you can.
Forget 'red balloons', StreetTalkLive's Lance Roberts expands from his recent visualization of Bob Farrell's investment rules to six more market mavens with insights into money management and being a successful investor. What you will find interesting is that not one of them promote "buy and hold" investing for the long term - probably because in reality it doesn't work.