Earlier we reported [5]that the biggest catalyst for the overnight surge, first in China and then everywhere else, was China's last-ditch scramble to contain the market crash by literally threatening it would arrest anyone caught "maliciously" shorting/selling stocks.
As it turns out that was not the only catalyst why the Dow Jones is set to open 200 points higher (thus assuring no NYSE breaks today): another one came courtesy of everyone's favorite comedian, newsletter writer, and paper money "trader", Dennis Gartman.
In our own account here… our retirement account… we are as of the close of trading yesterday very, very marginally net short in dollar terms and marginally net short in terms of “beta” for we remain long of “tanker” shares and we are long of steel, having exited our remaining position in a fracking related MLP yesterday and having moved those funds into tankers and steel.
AS always, as old dogs we prefer owning “the things that of dropped on your foot shall hurt” and we shall never, ever understand high-tech, nor big pharma and the like. We leave that to the “kids.” However as we’ve said hear countless times, we have derivatives in place that have our positions hedged and when we sold the remaining “Fracking” related position it reduced the “beta” of our portfolio and worked modestly to our advantage through the close of trading yesterday. It is working to our disadvantage this morning, obviously. We must stress here, however, that we are only marginally net short; certainly we are not materially so...
Don't think of it as $29.95 for a "newsletter", think of its as all the comedy you could possibly buy for one month.
