Two days ago, just as the market was about to soar, we wrote "Shorts Beware: Dennis Gartman Just Flip-Flopped To Bearish" in which we wrote "just as it seemed safe to pile into shorts today... here comes Gartman with a note that makes a dead cat bounce virtually assured."
"The S&P: This has the ominous look of what some of the Old Guard amongst the market technicians used to call “Three Peaks and a Domed House” pattern, which always gave way to substantive weakness. All we know is that Friday’s action was horrific and that the volume swells on the downside these days, and wanes on rallies!"
Our conclusion: "the biggest short squeeze of 2015 may be imminent."
What happened next was, drumroll, the biggest two day surge so far in 2015.
Well, just as we warned the bears to close out short positions two days ago, now may be a time for the bulls to panic. The reason: Gartman just flopped again:
... we would, under most circumstances, “see” this unanimous direction of all ten markets to the upside to be a harbinger of a bearish move… the harbinger of the end of the current bull market; but… and this is perhaps the very biggest of “buts”…this time may be different… maybe. This time the markets seem to want to levitate skyward and thus far any attempts to “call” the top and positions ourselves in anticipation of a downward price correction have proven futile and badly wrong.
You've been warned.