Gartman: "We Are A Bit Uneasy This Morning Being Short"

Just two weeks after he staked his reputation that "The Bull Market Has Come To An End", "world-renowned" commodity guru Dennis Gartman is getting nervous, and as he writes in his latest daily letter, "we
are a bit uneasy this morning being short."

Here is how Gartman is slowly but surely pivoting away from his "red-line" bearish call on stocks:

STOCKS HAVE RISEN A BIT SINCE YESTERDAY with our International Index having gained a marginal 19 points, with stocks in Asia moving sharply higher while stocks in Europe were weak. However, the markets in Asia are responding to what we perceive to be the best speech given yet by Mr. Trump last evening in which he made clear that the US will not stand down from its obligations abroad.

 

Heretofore, President Trump… influenced of course by the manifestly anti-globalist philosophies of Mr. Bannon… seemed intent upon reducing the US position of global authority, but last evening that philosophy was abandoned, and with that the Asia stock markets and the US stock index futures turned briskly higher.

 

Also, we note that the Fear & Greed Index here in the US made its way toward and below the all-important 20 level, having fallen to 15 as of the close yesterday and almost certainly to turn higher today given the strength in the stock index futures as we write. Previously, any time this index fell below 20 and turned higher, stocks which had been under pressure swiftly turned for the better and although the world’s stock market histories do not always follow the precise paths each time, they do have great and constant similarities.

And the resultant trade adjustment:

2. Short of Two Units of the NASDAQ 100; Long of Two Units of the S&P:

We began the trade Tuesday, August 1st with the ratio at 2.37:1 and we added to the position on Friday, August 11th with the ratio at precisely the same level. It closed last evening at 2.38:1.

 

We’ve reduced our “risk” point to 2.42:1 on a closing basis in New York and we’ll look for the ratio to make its way down to 2.15:1… noting that each 0.1% is a material shift in price, but we are a bit uneasy this morning being short.

It would appear that the bull market is back on again, as for Gartman's stake reputation, well... he puts it best: 

We are out of the office today, on the road home from Cookeville, Tennessee where we witnessed the Eclipse yesterday… however, we were actually about 5 miles from the perfect dead center of the event, but what we saw was spectacular! We’ll be back in the office late this afternoon for we are driving back home rather than flying.

Comments

eclectic syncretist Looney Tue, 08/22/2017 - 09:40 Permalink

This guy is just another Cramer, a shill whose job is to pump up sucker day traders and keep order flow as brisk as possible. They focus solely on the short-term fluctuations of the market, and promote strategies that constantly lose because when a person adopts them they can't see the forest for the trees. In any case, you can rest assured that if Gartman is managing any sizable amount of money he isn't trading it all in and out in the schizophrenic way he talks in front of a camera. If he did he wouldn't be managing anything after a year or so.

In reply to by Looney

equity_momo (not verified) Tue, 08/22/2017 - 09:34 Permalink

So he is still short on a VAR adjusted basis?   Looks like Nasdaq to push higher and leave S&P behind for a day or two. (Nasdaq opens +60bp , S&P 40bp for a net loss of 20bp Dennis. Well played)

Alchemedes Tue, 08/22/2017 - 09:42 Permalink

In an hour or two he is going to be more uneasy.  Then at the top of the bounce, which will be vigorous, he will reverse and go long and then feel completely nauseous rather than just uneasy, as the elevator cable breaks ...  such a piece of work Gartman is: the world-renowned momentum trader caught continually on the wrong side because he really doesn’t know jack about market cycles, internal dynamics, or price analysis. How he gets interviewed on business news networks is beyond me. Maybe his pompous language and prognostications are secretly comic relief for the talking heads?  But I wonder how much money he loses for his clients.

Harry Lightning Tue, 08/22/2017 - 09:48 Permalink

Gartman feels uncomfortable about being short equities ? Are you sure ?Good...hold my beer...finally I can short this fucking stock market and make some money on it.

two hoots Tue, 08/22/2017 - 09:48 Permalink

Starting to believe this market drama is  in line with all the other drama (trump, anti this and that) and everyone, even the so-called smart ones, are overreacting and fitting in to these new bandwagen expectations.   If you don't join in the drum pounding, you ain't in the club?

Alchemedes Tue, 08/22/2017 - 11:02 Permalink

Gartman’s SongOh, I’m feeling uneasy, Oh I’m feeling queasy, The market is going up and I am betting down!Oh, I’m feeling uneasy, Oh I’m feeling queasy,I must cover before I drown!Oh, I’m feeling uneasy, Oh I’m feeling queasy,I think I should go the other way!Oh no! Now I am feeling seasick, the market is just much too quickI am long now and the market falls away!Oh, I’m feeling uneasy, Oh I’m feeling queasy,I’m think I need to change my play (repeat ad infinitum)

issimo Tue, 08/22/2017 - 11:35 Permalink

I think the Ringling Barnum and Bailey Cuircus closed.  It couldn't compete with Gartman for thrills and spills!  Is Disney World next?

Ink Pusher Tue, 08/22/2017 - 12:27 Permalink

Meanwhile back on the plausible deniability charts,the  oil & gas markets are so fucked that they make any crackwhore wandering the streets of NYC appear to be chaste and cultured.