Gartman Is No Longer Bearish, Covers Shorts

Tyler Durden's picture

The last time we heard from Dennis Gartman, he has just turned bearish due to a peculiar "catalyst": he had just seen the infamous Barron's "Dow 30,000" cover (with a two day delay) which prompted him to say that "we would very much like to think that Dow 30,000 shall eventually be upon us, and we very, very much would like to believe that any further weakness in  stocks is to be bought, but at the moment we have very serious doubts to that effect…. Very, very serious doubts." Shortly after, the Dow spiked above 20,000 again, and the S&P closed Friday just shy of all time highs.

Fast forward to Monday morning, when the "world-renowned commodity guru" has flip-flopped again, and is no longer bearish, advising his readers he has covered his short.

STOCK PRICES CONTINUE TO MAKE THEIR WAY HIGHER and at this point we see no reason to try to suggest that our modestly bearish position has been right for clearly it has not be; that is, we’ve tended on balance to err quietly bearishly of equities or to err neutrally of the them when it has been proper instead to have erred openly bullishly. This is especially true following Friday’s sharp gains in light of the strong non-farm payrolls number released by the US Department of Labor.

 

It does not matter, apparently, that so many different fundamental and technical indicators we’ve grown fond of over the years have been and are manifestly bearish of equities, equities wish to go... and likely shall go... higher. P/e multiples may be strained to the upside, but shares are going higher. The CNN Fear & Greed Index may have soared to levels that in the past strongly urged one to be short of equities and from which weakness almost always developed, but it does not matter… shares are going higher. The public may be uncommonly long of equities, pouring money into passive equity funds at rates which in the past gave way to manifestly lower share prices, but again it does not matter… shares continue to go higher.

 

We have therefore made no “official” recommendations regarding the US equity market in quiet some long while, and it may be quite some long while before we actually do make another recommendation. Nonetheless, we were rather clear on Friday coming into the employment report that we were modesty net short of equities in our retirement fund here at TGL, having had no position in any of the individual equities but having taken a modest net short position via derivatives. Immediately upon seeing the report we ran to cover, “paying up” in the NYSE-pre-market to do so. Having covered that derivatives position we did nothing more. We’d done enough to get to the sidelines, taking our loss and focusing our attention elsewhere where sense seemed more common.

And now the real punchline: "We ended [Friday] +2.7% for the year-to-date. To get the “numbers” out of the way this morning, the S&P ended Friday up 2.6% for the year-to-date while stocks in international terms as evidenced by our International Index are up, as of this morning, 2.7%. We find it rather interesting then that we, in our retirement account, the S&P and our International Index are all up effectively the same."

Others surely find it "interesting" too. That said, today's mini-puke in Europe and US futures may just have gotten its second wind.

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Dental Floss Tycoon's picture

 

 

Gartman has got to be making a fortune with his percent of the churn he generates.

 

 

thesonandheir's picture

Just sold my house and gone YOLO short NASDAQ.

 

Smoke me kipper I'll be back for breakfast.

Bunker Boy's picture

Gartman is an obvious huckster. Why does ZH give him cred by continuing to cover him? It'd be more entertaining to give Charlie the Chimp a dart of the day to throw at a investment advice board and highlight the brilliance of Charlie's daily dart recommendations. 

Okienomics's picture

"Why does ZH give him cred."

Uh, no.  ZH is calling him out and destroying his cred. ZH is also providing an invaluable service to readers...

ALERT: GARTMAN EXITING SHORTS... Time to short!

See the thesonandheir's comment just above your own.

SoDamnMad's picture

Sell, Mortimer, Sell.  Turn those machines back on.

OverTheHedge's picture

I so like the way he refers to his "retirement fund", as though there is any money left to consider retiring with. Bless him for his enthusiasm, though.

InjectTheVenom's picture

anyone know of a quadruple-short SPX ETF that i can go all-in on ?

Unreliable Narrator's picture

Gartman is the best investment advisor ever.  Of all time.  He is un-fvcking-canny.  ZH isn't destroying his cred ... ZH is turning him into a legend.  Every call he makes is gold.

 

In evaluating someone as "always right" or "always wrong", the "right" and "wrong" are completely irrelevant.  It is the "always" that is relevant.

 

Gartman is the incarnation of "always". 

 

Bask in his genius, fellow ZHers.  Long live Gartman!

armageddon addahere's picture

You can make a fortune fading Gartman. A prophet who is always wrong, is as good as one who is always right, as long as you know he is always wrong.

SPX down 4 points from Friday's high as of this writing (10:25 Monday)

jaxville's picture

 Gartman is a momentum trader.  He is successful at it but he should never be quoted about market direction as his position changes more than most people change their socks.  I shake my head every time I see a piece about what he is doing.

shizzledizzle's picture

Thank god I stayed short... It was pretty nerve wrecking but I was fairly confident he would change position in a couple of days.

GunnerySgtHartman's picture

Just like the wind, he changes direction!

BorisTheBlade's picture

More like farting to determine direction. Don't stay downwind.

NugginFuts's picture

you mean "Couple of minutes", right? Dude wafts around more than a bad fart.

Turin Turambar's picture

Same here.  The day he came out short I was up 40% on my QQQ puts and was sweating it.  Of course, I am now down 50% which is pretty normal for ignoring contra-Gartman .  This is a godsend for me, since I was actually thinking about closing my put position this morning and taking my lumps.  50% is better than nothing. I'm actually thinking of doubling down on my contra-Gartman put.  This guy is an unfrigginbelievable 100% contra bet!  GL

Calculus99's picture

No longer bearish!

He only went bullish a week ago.

 

NuYawkFrankie's picture

I shudder to think what he "covered his shorts" with before he actually covered his short-postions

Okienomics's picture

Here's a worse mental image, "Gartman Drops Shorts"

LawsofPhysics's picture

So, time to sell again? thanks Gartman!

greatest contrarian indicator Since Lehman!

Always a short term play, so move quick gents, he will certainly change his mind shortly.

Rich Stoehner's picture

time for me to short some shit

buzzsaw99's picture

batten down the hatchez bitchez.

spanish inquisition's picture

Someone needs to redo an old EF Hutton commercial starring Gartman.

silverer's picture

I was starting to miss Gartman. Well, you know.

Tim Knight from Slope of Hope's picture

The way this guy writes bugs the holy hell out of me.

And as for this - - "we see no reason to try to suggest that our modestly bearish position has been right - - " well, yeah, Dennis, because a second-grader could see that it would be this thing call "lying"

dude duderson's picture

Covers shorts perfectly at the high and sells his longs at the lows...Gertman, you beautiful genius, never change

Tim Knight from Slope of Hope's picture

Why would he feel compelled to put the word numbers in quotation marks? What a dink.

gmak123's picture

Fartmen opened his mouth again and in a different direction. What's new

Anarchyteez's picture

Give it a week...he'll flip again.

BlueHorseShoeLovesDT's picture

Does anyone care

 

This guy flips a coin and writes a newsletter.

 

The CBs control the "market" and they want it up more often than not.

 

 

Just watch GS climb to 250, there is a reason that Cohn looks so giddy in the pictures of Trump signing the Dodd-Frank EO

stopthehandouts's picture

Who gives a shit what this pogostick thinks or does. Not sure why ZH gives this guy the time of day.

Skiprrrdog's picture

Gartman is ZH's own, patent pending, contrarian indicator...

Evan Wilson's picture

Gartman is priceless.

Where as people have to pay for his newletter to get bad advice, he tells everyone for free on CNBC what he thinks, and if you take the opposite, it is almost a guaranteed profit.

 

The only problem is that Gartman changes his mind so much and so fast that it is hard to keep up with the changes.

buzzsaw99's picture

Joker: ...What would I do without you? ...  No, no, NO! No. You… you… complete me. [/the dark knight]

Skiprrrdog's picture

Wouldnt a Magic Eight Ball with Gartmans face painted on it be more effective?

Okienomics's picture

No good, it would scare the children.

Yen Cross's picture

 The Gartman [court jesture] lives for another day.

Occams_Razor_Trader's picture

What does Gartman change more often?

<---His view on the market?

<--- His underwear?

 

 

RabbitOne's picture

I just had this crazy feeling that I should short the market? Let's see start with the VIX...

uncle_disgusting's picture

Is that a volume climax I see before me? 

https://invst.ly/37qqt

 

bardot63's picture

This guy is the biggest joke.  Gartman would be a great contra-indicator, except that he changes his tune every 2 minutes.  Can't keep up with his b.s. attitudinal shifts.

LN's picture

Gartman's a comedy routine, right?

LN