In a world in which not even the Fed has any clue how to read "some" economic data while ignoring others ahead of what is setting up as the most important rate hike, a "jarring" one in the words of Lloyd Blankfein, there is one certain indicator left: Dennis Gartman. Here is the latest.
We turned openly, but moderately, bearish of shares late last week and for a day or two we appeared to have been wise in our decision. Clearly that wisdom has waned rather materially in the course of the last two trading sessions and following the Fed’s non-decision yesterday we found ourselves covering in the calls we had written against our “tanker” shares as well as covering in some of the derivatives we had had in place, thus taking our net position in our retirement funds from one that was modestly net bearish to one that is nearly net market neutral.
Finally, we find it interesting how suddenly the market has fallen out of hatred for the simple markets such as steel, copper, railroads, shipping et al and has fallen into veritable “lust” for those same industries. Here at TGL we are always far more amenable to owning these simple companies than we are to owning Big Pharma and high technology for we can count the number of rail cars moving; we can count the number of containers aboard ships; we can count mining sums and steel smelted et al. These simple companies endemic to global economic growth are and have been and always shall be our favorites. Give us millions of tonnes of cold, rolled steel any time over “eyeball counts,” “gigs” and the like.
We, on the other hand, will settle for the daily flip-flop.
