Yesterday morning, we wrote a post in which we explained "Why The Market Is Poised For A Rebound: Gartman Says "Bear Market" Will Take S&P To 1420-1550 [3]" where we quoted from yesterday's Gartman letter, in which the confused "retirement fund" investor said that "there are still many who deny that this is a bear market, but it is that and we fear that it has a good distance to the downside yet to travel. Merely to get to “The Box” shall take the S&P to 1420-1550! Rallies are to be sold; weakness is not to be bought."
Stocks rallied.
Fast forward to today when as of this moment the S&P is soaring and is set for the 8th best gain in 2015. Why? Here is one reason, from the latest Gartman letter:
Essentially repeating what we said here yesterday, there are still many who deny that this is a bear market, we fear that it has a good distance to the downside yet to travel. Merely to get to “The Box” shall take the S&P to 1420? 1550! Rallies are to be sold.
And more:
As we write, with the rally… and a very strong rally too we shall admit… in Asian share dealing, stock index futures for the States are up quite sharply and there will be many who will argue that this is the start of the next bull market; that the worst is now behind us and that the global nearly 20% decline from the highs is sufficiently deep to have discounted all of the ill economic news that bear markets must do. We are of the opinion that the worst is not yet behind us; that a mere less-than-handful of months from the highs is insufficient as far as “time” is concerned for a bear market to have run its course and that new lows still lie ahead. We shall consider each and every rally then to be interim and corrective in nature, as we consider today’s rally.
So confusion abounds. Where there is no confusion is where Gartman was just stopped out. Recall from a week ago:
Gartman: "New recommendation: We wish to trade wheat from the bullish side and shall buy December KC Hard red winter wheat"
— zerohedge (@zerohedge) September 22, 2015 [4]
To those who shorted wheat on the Gartman fade, now is the time to cover:
We do note that we were stopped out at breakeven on our long position in wheat at the close yesterday
As for the broader market, the buying will go on until Gartman flops again.
