Dennis Gartman: "This We Find Anomalous"

Tyler Durden's picture

With stocks at all time highs, Dennis Gartman, who took the time to make a quick mockery of cryptocurrencies in his latest letter, is starting to get nervous on risk assets, pointing out what he calls an "anomaly." Below are the selected excerpts from his latest note:

THE S&P FUTURES: They Rise While Volume Falls!: We are still erring bullishly of the equity market, but we do find it passing strange that as the market has moved higher the volumes being transacted are plunging… and aren’t price and volume to move in concert, one with the other?.



STOCKS, GLOBALLY, CONTINUE THEIR RELENTLESS ADVANCE as six of the ten markets comprising our International Index have risen in the course of the past twenty four hours and as four have fallen… none by anything approaching 1% in either direction however. Further, if there is anything resembling a geographical trend it is that Asian shares have been a bit weaker than North American and European shares were stronger. On balance, however, there has been relatively little activity as the world awaits the final day of the two day FOMC meeting and as the world awaits the post-meeting statement by the Fed and the further post-meeting press conference by Dr. Yellen.


Two things have our attention this morning with the first being that the CNN Fear & Greed Index has risen by the barest of margins since yesterday, closing last evening at 81, up 1 point from that of the day previous. Secondly, we draw attention to the chart of the S&P futures [above]… the “lead” position in TGL as we have so often referred to it over the years and the place where we “float” potential new ideas or show charts defending old ideas… noting that as prices have risen to new highs the volume has waned and waned and waned again. This we find anomalous, for volume should always follow the trend and in this instance the trend is up while the volume is most assuredly down.


“Anomalies” tell stories. This is a lesson we have learned over the years and this anomaly it telling us that although the trend is up and although we are to remain bullish, we should be warily so; we should be modestly so; we should be fearfully so, but most of all we should not be aggressively so.


We have not reported our own positions in our retirement account of late and for a good reason: we’ve done nothing; that is, we are holding the same positions we were holding mid-week last week: we are long of gold in EUR and Yen denominated terms and we are long of a very small sum of corn via the corn ETF. We’ve done nothing and we see nothing more to be done…at least for the moment.

And, as a bonus, here is Gartman's take on crypto:

"THE CRYPTO?UNIVERSE JUST KEEPS EXPANDING: Back in ’13, when the crypto market capitalization was $1.7 billion, Bitcoin was 93% of the total. As of now, with a  market cap of $144 billion, Bitcoin is 47% of the total as Ethereum, Ripple, Dash, Ethereum “Classic,” Diet Dr. Pepper, Coke One and others compete for attention!"

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Herdee's picture

Central Banks are still manipulating the markets Dennis.

jcaz's picture

Gartman makes Captain Obvious look like Kreskin-  volume has been light for YEARS and NOW he picks up on it????

hedgeless_horseman's picture


we are long of gold in EUR and Yen denominated terms and we are long of a very small sum of corn via the corn ETF. We’ve done nothing and we see nothing more to be done…at least for the moment.

We are long of gold in KRUG and MPLF terms and are very long of livestock, pastureland, skills, gardens, guns, and good ol' boys via the country life.  We’ve done nothing and we see nothing more to be done…at least for the moment.

NoDebt's picture

Talks like Yoda he does.  Makes him appear smart he thinks it does.


Dickweed Wang's picture

Moron he fucking is . . .

MillionDollarButter's picture

Gartman confirms, BTC to rule them all!

HillaryOdor's picture

So does this mean it's completely normal?  I'm lost.

land_of_the_few's picture

Sounds a bit like Gollum too.

SubjectivObject's picture

pregnant question; why in particular KRUG and MPLF and not USGE?

BabaLooey's picture

Be right 80% of the time.

Do the OPPOSITE of what this screaming bag of horseshit says.

_RRR_'s picture

so when he's seeing AND telling it to everybody one must ignore the matter? OKEH

ejmoosa's picture

If we compare this to the housing market, maybe we should conclude that there are just not enough shares for sale.

That's there excuse for housing right?

NugginFuts's picture

Crystal Ball Gartman strikes again!

GunnerySgtHartman's picture

I find Gartman to be "anomalous."

StackShinyStuff's picture

If I was in a huge hurry I might accidentally call you G'artman

shizzledizzle's picture

You can say that again. How someone who changes position like the breeze and is always on the wrong side of a trade is still in business is beyond me. 

GunnerySgtHartman's picture

The same thing could be said for every so-called "analyst" on Wall Street.  When was the last time an analyst was fired for making incorrect calls?

Albertarocks's picture

Mr. Gartman complains about Ethereum, Ripple, Dash, Diet Dr. Pepper and Coke One "competing for attention".

Hahaha... that's rich.  Look who's talking.

Rock On Roger's picture

Gartman makes a good point though. What value is a cryptocurrency when anyone can create a cryptocurrency?

Nobody can create gold.

Or silver.

Albertarocks's picture

I agree 100%, which is why I'm heavily into silver miners.  But my point was that Gartman points fingers at somebody else "seeking attention".   I find that irony to be pretty darned funny.

I get the sense that on a personal level he's probably a real good guy.  Although if you were at a cocktail party with him he'd be looking you in the eye, talking, with a mouthful of wine dribbling out all over his tie.

mily's picture, what an irony

mily's picture

And since when levitation on falling volume is an anomaly? it's a sign of divergence Dennis, BTW I love those big, fat trend lines

asteroids's picture

Hey Dennis: “The market can stay irrational a lot longer than you can stay solvent!” The FED and its minions have the ability to do so. Stay solvent by NOT playing and staying in cash.

Dickweed Wang's picture

Why do we keep seeing articles on ZH about what Gartman says?? Is it for the comedy relief?? A stopped clock is right more often than that asshole.

Hkan's picture

Just amazed large scale manipulation works....over and over again...

order66's picture

Volume always decreases in strong trends. Fucking moron.

surf@jm's picture

The central bank hasn`t been ordered to sell yet........


gmak's picture

Anomalous is when Gartmann is correct about market direction. Anomalous is when his fund still has investors in spite of being wrong on EVERY market turn.

bobert727's picture

He doesn't have a fund.

He trades his "retirement account"

Whatever that is

TheSilentMajority's picture

When he says “We”, is he referring to himself and his 23 cats?

Not if_ But When's picture

He talks by just putting random words together like Alan Greenspan or Chauncy Gardener.       CPL593H

JDFX's picture

Er, price can adjust in a vacuum. So what does that tell you about psychological trading decisions biasing that price ' should ' go with volume ? 


Spoiler alert. It's flawed ! 

NoWayJose's picture

Long gold in EUR and Yen - yet it is the Dollar that is weak? Yeah Gartman!

Tim Knight from Slope of Hope's picture

This has passed the point of parody.

UnKeynes's picture

It's only "anomalous" to a brane-ded Neo-Keynesian NWO shill like Gartman.  I suppose that, since Lord Keynes didn't teach about the VIX volatility index (since it didn't exist then), as one of Keynes' acolytes, Mr. Gartman is still languishing in the same Slough of Despond as all of his fellow "Keynesians" today: i.e., doctrinaire IGNORANCE.  Or is it really EVIL, masquerading as stupidity?  Pick one.

From “The Economic Consequences of the Peace” by John Maynard


“Lenin is said to have declared that the best way to destroy the

Capitalist System was to debauch (devalue/inflate) the currency.

Lenin was certainly right. There is no subtler, no surer means of

overturning the existing basis of society than to debauch

(devalue/inflate) the currency. The process engages all the hidden

forces of economic law on the side of destruction, and does it in a

manner which not one in a million can diagnose.

"By a gradual, continuing process of inflation, governments can

confiscate, secretly and unobserved, an important part of the wealth of

their citizens. By this method they not only confiscate, but they

confiscate arbitrarily; and, while the process impoverishes many, it

actually enriches some. The sight of this arbitrary rearrangement of

riches strikes not only at security, but at confidence in the equity

(fairness) of the existing system of distribution of wealth.”

Please note that the operation of this process is totally independent on

the type of economy, whether “capitalist”, “socialist”, “communist”, or

“other”, and 100% dependent on the power that the banksters have

over the monetary life of the nation. As Lord Rothschild said, “Give me

control of a nation’s money and I care not who makes its laws.” This

happened to the United States of America in 1913, with the creation of

the “Federal Reserve”, and later expanded with the creation of the

Exchange Stabilization Fund, which remains a totally "dark" financial

entity, with ZERO accountability to anyone outside the Dark State.


any_mouse's picture

Is it rational to expect sound policies from the mind of a debauched pervert?

CStanford's picture

It's not an anomaly.  Shrinking volume is seen at the top of every bull market, which is what makes a market crash -- lack of buyers. 

any_mouse's picture

It's also a longer term trend than just the last couple of months. YoY Volume is down significantly in SPY from 2015.

I commented on this a month ago.

Mid Sept 2015 90 day average Volume was ~ 130,000,000+. 90 day Price range was $206-207.

Mid Sept 2016 90 day average Volume was ~ 93,000,000+. 90 day Price range was $212-213.

Mid Aug 2017 90 day average Volume was ~ 67,000,000+. 90 day Price range was $241-242.

Collapsing Volume and significantly Higher price range.

BTFD at the ATFH!

Black Warrior Waterdog's picture
"This We Find Anomalous"

This toad is like the Bizarro World Yoda of equity markets.