The long awaited moment has arrived.
It was precisely one week ago, [3]when we said "Bears have been duly warned", after we revealed that Gartman just went bearish. Recall that in this broken, hilarious "market", completing the trifecta of the only catalysts that matter, in addition to daily central bank intervention and stock buybacks of course, is fading Gartman's daily flipflopping.
This is what he said in his note to "clients" on the morning of October 14:
All the markets that comprise our International Index have fallen, a very rare occurrence indeed. In fact, when this sort of thing happens following bullish moves it has almost always signaled the end of the bull-run. Couple this unanimity of price movement with the “reversals” noted above and we have a situation that concerns us greatly. Indeed it concerns us enough to exit our long positions entirely upon receipt of this commentary… positions that only a day or two ago seemed to us to be insulated from random noise, able to withstand a day or two of normal consolidation, but unable now to withstand the technical deterioration that has taken place as swiftly as it has. Certainly we do not like switching positions this quickly, for we appear to be flippant and foolhardy, but history tells us that we have no choice.
We turned bullish of stocks when this index and others “reversed” to the upside following the Employment Situation Report two weeks ago, but the trend line weighed heavily and the Index “reversed” to the downside yesterday… to our chagrin."
Incidentally, this bearish reversal followed just 5 days after the following prognostication: "The “Melt-up” Begins: The reversal to the upside that took place last Friday was the ignition point for the bull run, but now the fact that this trend line is being taken out from below shall simply add fuel to the already heated fire. Let the “Melt-Up” begin."
Here is what happened next:
[4]
Since then we eagerly cautioned anyone who cared to listen not to turn "bearish of stocks in any terms" until Gartman flopped again, as was inevitable.
That just happened. To wit from the latest Gartman letter to "subscribers":
We are still of the opinion that the “bear market” that began in late May ran its course, when stocks at their worst were down just a bit more than 19%. We look for stock prices still to move higher, and to finish the year higher, but likely not materially so. As such, we are buyers of any intra-and inter day weakness on balance for that is what one is to do in a bull market."
What indeed is one to do in a bull market (that supposedly ended one week ago), than to listen to the most accurate, if inversely, forecaster the world may have ever seen.
Bulls: you have been warned.
