One week ago, just after the S&P crashed and when - as predicted - a battery of central bank intervention from China to Dudley jawboning, would unleash the biggest 2-day surge in the Dow Jones ever recorded, Dennis Gartman was unpleasantly out of stocks [6]. In fact, the daily financial TV fixture whose daughter, Courtney, is a CNBC Fast Money line producer [7], could barely contain himself from telling subscribers (?) to his newsletter that now is the time to panic. To wit:
STOCK PRICES HAVE A LONG WAY TO FALL, WE FEAR!: This is the S&P in monthly terms and now that this first trend line has been broken we fear that the second one drawn here may eventually be put to test over the course of the next several months.
To which we said "Some good news for bulls: the long overdue snapback may be imminent" - this, too, proved to be spot on. Gartman then added:
... we should all be in “survival mode” today; there is no reason to take action of any sort other than to raise liquidity where necessary in order to survive the present chaotic situation. The margin clerks are in control today and they can and will move markets where they wish and in whatever manner they wish.... This is time for retaining what liquidity we can muster; this is not a time for courage. Get smaller; get liquid and get safe. This is getting ugly and we can only hope it does not get worse.
And in the best humorous tradition on Wall Street, moments ago Gartman was out with the following: "I'm confused, but still buying stocks." More from CNBC [8]:
[9]The annual central banking conflab at Jackson Hole over the weekend has left widely-followed investor, Dennis Gartman, confused on when the Federal Reserve will raise its benchmark interest rate.
But, the editor and publisher of the Gartman Letter, has told CNBC he is "slightly long" on equity markets amid this uncertainty from the Fed and the stock market turmoil spreading from China.
"I trade only from my own account, I'm slightly long - a little discouraged when I see the action we've seen overnight in China. But, I think I'll stay that way and my propensity shall be to a quiet modest buyer of more on today's weakness," he told CNBC Monday.
"I think this morning's action is as confusing as any as we have seen, all predicating upon whether the Fed shall or shall not move in September, whether it can or cannot move in September. And listening to the various comments from the monetary authorities in Jackson Hole Wyoming, I'm still confused as to whether they can or cannot move in September," Gartman said.
So if anyone was confused why futures are pointing to a lower open, now know.
