Nothing like some morning humor to diffuse the general feeling of financial apocalypse, which today comes courtesy of the best contrarian market indicator known to man and algo, Dennis Gartman:
WTI CRUDE OIL: We Turned Bullish Too Early! The term structure might have made us shift from being manifestly bearish of crude to being incipiently bullish but we were far too early in doing so in light of the panic in the capital markets globally.
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We were taken out of our long position in crude oil on Friday… thankfully… for the full 3% risk was hit then against both WTI and Brent crude; those not out should be out… now! This is no environment for rank speculation
Some good news for bulls: the long overdue snapback may be imminent.
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.
And the punchline:
Finally, 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. They have only one concern: the survival of their own companies and that must always be remembered. Can the EUR move even higher beyond the ludicrous level to which it has already risen? Yes, of course it can. Should it? No, of course it should not, but that matters not a whit this morning. Survival is all that matters. All else is secondary, even if that means surviving with far less liquidity than one had only mid-week last week.
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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.
Monopoly money liquidity, of course. And now, back to the less than humorous reality.