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Is This The Usual Reason Why Stocks Are Plunging?

Tyler Durden's picture




 

Excerpted from today's World-Renowned Gartman Letter,

SHARE PRICES HAVE FLOWN SKYWARD as our International Index has gained triple digits… precisely 100 points… for one of the very few times in its history, or 1.1% and it would have been higher still had it not been for holidays in Germany and China which have left their DAX and the Shanghai indices unchanged from the levels prevailing Friday. As evidenced by the chart of the S&P at the upper left of p.1, the support we had hoped would hold late last week had indeed held; the well-defined upward sloping trend channel continues to remain fully intact and until that trend line is broken we have to once again err upon the side of being bullish of shares generally. It is that simple and to make it more complex than that shall make it difficult to keep one’s focus.

 

Oh, there are indeed any and all sorts of fundamental reasons why the stock market in general terms is given over to being over-extended to the upside, including P/e ratios that are high; including earnings that may prove faulty; including high levels of margin debt; including far, far too many IPO’s that we think are ill-advised and overpriced; including the end of QE here in the US and of course including the horrible geo-political storms brewing seemingly ceaselessly… but yet support levels have held and trends from the lower left to the upper right obtain. One may wish to join the bearish camp, but one would be wrong.

 

...Prices are headed higher and we’ve no choice but to reduce our exposure on the short side via derivatives that shall therefore increase our long exposure.

And then this happened...

 

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Mon, 10/06/2014 - 11:56 | 5294564 RacerX
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Does Gartman work for Time?

Mon, 10/06/2014 - 12:06 | 5294604 NoDebt
NoDebt's picture

This mook really needs to watch the Seinfeld episode where George Costanza starts doing the exact opposite of what he thinks he should be doing in every situation..... and becomes wildly successful.

Mon, 10/06/2014 - 12:29 | 5294678 flacon
flacon's picture

PLUNGING?! We're not even 60 points down from the tippy top.

Mon, 10/06/2014 - 15:15 | 5295538 Richard Chesler
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Time to bring out Obozo to parade the recovery!

 

Mon, 10/06/2014 - 15:19 | 5295568 Divided States ...
Divided States of America's picture

Fuck.....I think its more of a sure thing to make money if anyone can get a copy of the Gartman letter before it gets published than having the minutes to the Fed minutes prior to it being released.

Mon, 10/06/2014 - 12:47 | 5294738 44MagnumPrepper
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Seinfeld - still better than 99% of anything else on TV.  

Mon, 10/06/2014 - 21:34 | 5297140 tc06rtw
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. . . and Seinfeld was

                       ~ funny,

                       not  FUNNY !

Mon, 10/06/2014 - 12:07 | 5294609 farragut
farragut's picture

"One may wish to speak in the 3rd person, but one must recognize one would sound like a complete & total prick."

Mon, 10/06/2014 - 15:14 | 5295535 EINSILVERGUY
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Jimmy doesn't get upset very often but Jimmy isn't real happy with your remarks. In Fact Jimmy is getting quite angry

Mon, 10/06/2014 - 12:25 | 5294667 holmes
holmes's picture

there's still hope for the Great Gartman!

 

"The penises grown in a lab: Scientists say organs could be tested on humans within five years"  
Mon, 10/06/2014 - 13:14 | 5294865 CrimsonAvenger
CrimsonAvenger's picture

So they'll test a bunch of penises on him? I have a whole list of people I'd offer as test subjects for that. Of course, a few, like Barry, might really enjoy it.

Mon, 10/06/2014 - 11:56 | 5294567 IronShield
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What a Bitch!

Mon, 10/06/2014 - 12:44 | 5294735 Cacete de Ouro
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That's about the long and short of it. Psychologically, I'd say that weiner Gartman has black penile envy.

Mon, 10/06/2014 - 11:57 | 5294574 IronShield
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Of course you have to like what's going on with the Commodities here.  In an attempt to 'punish' (yeah right) Putin, the PGMs have been getting smoked.  Thank you for the sale, please carry on.  ;-)

Mon, 10/06/2014 - 11:59 | 5294578 RattNRoll
RattNRoll's picture

Stocks plunging????????????????

Mon, 10/06/2014 - 12:08 | 5294613 syntaxterror
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Dow is down 0.07% right now. 

Mon, 10/06/2014 - 12:11 | 5294626 Bell's 2 hearted
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could be painful ... if levered 1000x ...

Mon, 10/06/2014 - 12:09 | 5294622 Proofreder
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Well, as of noon, DJI futures are 16881 and the S&P future at 1953, both down sharply from the open.

Plunge Protection Team, where are you ???

SSDD - did you buy into the Silver Sale in the high $16 range ??  Didja BTFD in PM's

Mon, 10/06/2014 - 12:00 | 5294581 ForWhomTheTollBuilds
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Am I the only one starting to feel like I'm watching a jock beating up on a retarded kid?

Mon, 10/06/2014 - 12:09 | 5294615 44MagnumPrepper
44MagnumPrepper's picture

Nope.  I feel that way everyday from 9:30am - 4pm EST.

Mon, 10/06/2014 - 12:40 | 5294718 H. Perowne
H. Perowne's picture

And every Obama-Putin "conference"

Mon, 10/06/2014 - 12:01 | 5294584 Son of Loki
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I smell a nasty correction in the wind. Stawks like McD, Boeing, and even the mighty HAL have dropped substantially already. With the offical "rekovery" in full swing, it's odd how many stores and companies are hemorrhaging.

I'd rather believe the CEOs of Walmart, Container Store, etc ... and my own eyes then Gubmint stats.

Mon, 10/06/2014 - 12:08 | 5294618 Bell's 2 hearted
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yep ... margins are being squeezed further related to consumer spending.

 

And realization (reuters yesterday) strong USD will hurt overseas sales/profits

Mon, 10/06/2014 - 12:02 | 5294587 Yen Cross
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   I think Gartmans brain is short a few units of rational thought.

Mon, 10/06/2014 - 12:04 | 5294592 slaughterer
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TSLA up another 2.5%, NFLX up another 1% 

Mon, 10/06/2014 - 12:07 | 5294605 Cruel Aid
Cruel Aid's picture

Why can't he just say 'no friggin idea! May go up, i'm getting longer'

Only a fool would make a definitive statement in these times

 

Mon, 10/06/2014 - 12:09 | 5294620 44MagnumPrepper
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Don't forget to buy CMRAONASTK today!

Mon, 10/06/2014 - 12:12 | 5294621 buzzsaw99
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http://www.zerohedge.com/news/2014-09-24/why-stocks-are-soaring

 

At the moment then, we are reticent about owning equities...

 

[D. Gartman 9/24/2014]

Mon, 10/06/2014 - 12:10 | 5294623 spastic_colon
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"Is This The Usual Reason Why Stocks Are (Not) Plunging (Anymore)?"

 

Sorry ZH couldn't help it............

Mon, 10/06/2014 - 12:17 | 5294644 El Hosel
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Yeah, its been real nasty... seems like we have not made a new ATH in days.

Mon, 10/06/2014 - 12:12 | 5294627 Tsar Pointless
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Stocks plunging. Right.

Wake me up when we are LLD and/or when the zombies have infiltraded the NYSE floor.

Down .1% and it's a "plunge". Good grief, Charlie Brown!

Mon, 10/06/2014 - 12:16 | 5294637 El Hosel
El Hosel's picture

This one may just wish him to STFU... Long of Mute Gartman

Mon, 10/06/2014 - 12:55 | 5294775 gaoptimize
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Like the Hanar in the game "Mass Effect" or Khajiit in the game "Skyrim".  Maybe we both should start paying attention to markets and fundamentals and stop playing video games as much.

Mon, 10/06/2014 - 12:23 | 5294660 ILikeBoats
ILikeBoats's picture

Didn't the Fed stop most of their QE for October?  And it will (probably) resume in November after the mid-term elections?  Wouldn't that account for the lack of levitation, that some $85B or more per month is not being pumped into stocks?

Mon, 10/06/2014 - 12:22 | 5294662 farmboy
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Where can i find performance statistcs for mr G ?

Mon, 10/06/2014 - 12:23 | 5294664 firstdivision
firstdivision's picture

I see the 'flight to safety' is in full effect.  GPRO up nearly 3%

Mon, 10/06/2014 - 14:54 | 5295412 Neverstopprintingme
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now 8%. 

Mon, 10/06/2014 - 12:40 | 5294721 yogibear
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Gartman should join Cramer and have a show called Stupid Money.

Tue, 10/07/2014 - 01:23 | 5297737 PiratePiggy
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"Stupid Money in Dollar Terms"

Mon, 10/06/2014 - 16:39 | 5296006 bobert727
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"reduce our exposure on the short side via derivatives "

But tell us Dennis...will the derivative be in terms of Yen? Thai Bhat? Indian Rupee? Will you be "long of derivatives or short of derivatives"?

I gotsta know......

 

Mon, 10/06/2014 - 18:23 | 5296474 slotowner
slotowner's picture

Oooohhh! An almost 1% in the Russel.  Is there panic ensueing?  Is the world on the brink of collpase?  Do we need to write another article & pitch the gloom like there is no tomorrow?

Mon, 10/06/2014 - 21:25 | 5297156 Ghostdog
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Its truly insane how he can do this over and over. He should be the next fed chair woman

Mon, 10/06/2014 - 23:15 | 5297479 BaggerDon
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Only JOE BAGODONUTZ, BECKY NOT TOO QUICK, and Sorely SORKIN, could be more wrong...

Tue, 10/07/2014 - 01:21 | 5297735 PiratePiggy
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If the market drop lands on Gartman's foot, which will bounce?

 

If it is always good to be Sean, is it also good to be herd?

 

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