Dennis Gartman provides a trade update on one of his top trade recommendations:
Long of One Unit of the S&P/short of One Unit of the Russell 2000: We were sellers Monday, May 4th of the Russell and we were buyers of the S&P, for the chart of the former is ominously bearish while the chart of the latter is interestingly bullish. We’ve done equal dollar sums on both sides of the trade and for now we’ll not wish to see the trade more 2% against us. As we wrote the June Russell 2000 was trading 1222 and the June S&P was trading 2099.50.
This morning they are 1253.50 and 2119.50 respectively, so we are now behind by 2.6% on the Russell and are ahead by 1.0% on the S&P. For now we shall sit tight but we are swiftly approaching our stop point, which is a 2% loss.
So is Gartman about to "Gartman" himself? For the answer to this exciting question, check back after the close.
