On Thursday, just as stocks were set to explode higher on "trade deal optimism" we reported that "world renowned commodity guru" Dennis Gartman had issued his latest bearish recommendation, saying that "we are sellers today of the December S&P... at or near to $2916... We’ll “do” one unit of each and will risk 2% on each position and no more than that", to which we said that "this effectively assures that 2,974 on the S&P is in the bag."
We didn't have long to wait, and less than a day later, 2,974 was indeed "in the bag" as Gartman's stop level was hit and the "world-renowned commodity guru" was stopped out just after the market opened for trading on Friday, when the emini rose as much as 20 points above Gartman stop loss target.
Only apparently he wasn't, because in his Monday Gartman Letter, Dennis decides to take a machete to revisionist history and "explains" that despite being deeply underwater on his short, with the S&P surging almost 1% above the stop loss line, he actually remained short into Monday because... well, you read it for yourselves.
Short of One Unit Each of the December S&P and EURO STOXX 50 Futures: Thursday, October 10th we were sellers of the December S&P and December EUR STOXX 50 with the former at or near to $2916 and with the latter at or near to 3456. We “did” one unit of each and will risk 2% on each position and no morel. That shall be 2974 and 3525 with the markets trading 2967 and 3537 respectively.
What Gartman is referring to is the closing print; he conveniently ignores that the intraday high print in the S&P was 2,994. Which apparently for someone with as large a "balance sheet" as Gartman, who only gets stop loss notices at EOD and not intraday prints which during a Volkswagen like squeeze would lead to gloriously hilarious results, is not an issue as he eats margin calls for breakfast.
And this is how he explains the fact that his stop was hit for hours and hours, and yet he was never actually stopped out:
It traded to our stop on Friday for a very few brief moments but did not trade through there for the usual “hour or so” duration.
Once again, Garts conveniently decides to pro forma reality: not only did the S&P trade "through" his stop for the "hour or so" duration, it traded through there for the entire day session, before the last minute selloff pushed the S&P back under 2,974. But luckily for Gartman, who no longer even pretends to manage anything besides a token "retirement account", none of this actually matters.
Still, the fact that Gartman refused to admit he was stopped out of his short in one day is bad news for the bears, because it means Gartman is still short, which is a green light for the algos to BTFD. And sure enough markets have been a straight line higher ever since Garts disclosed his latest positioning.