Yesterday morning we reported that in what was a clear sign of hope for the bears, after days of diterhing, "world renowned commodity guru" Dennis Gartman had stopped out his market short, just days after suffering "one of the worst days in a very long while" after Gartman's retirement account suffered substantial losses on its log Riot Blockchain position.
And yet, despite Gartman's capitulation, the DJIA still closed up 400 points yesterday, prompting the idea that "Clearly covering a short is not enough: Gartman needs to go long."
Clearly covering a short is not enough: Gartman needs to go long— zerohedge (@zerohedge) February 26, 2018
Well, we have good news: in the latest shift to the Gartman portfolio that may explain why the market is red today, in his daily Gartman Letter, the regular CNBC Fast Money guest writes the following:
Since our error of judgement regarding an investment in the Blockchain two weeks ago and since the preposterous rumours spread by Bloomberg.com of the supposed “demise” of our retirement fund, we’ve kept a rather low profile and have tried not to make material changes to our retirement account.
We are still long of the shares of the largest independent bank in Tidewater, Virginia as we were then. We are long of the shares of a business development company, bought for the dividend paid monthly. We are long of the same energy related trust that we were then, bought also for its well covered monthly dividend and we are now long of gold, as recommended yesterday.
Finally, we have a derivatives position in place that has reduced our exposure to the long side of the market, leaving us modestly net long of “equity” on balance.
Our advice to Fed Chair Jay Powell - if he really wants to slam the market over which he appears to have lost control - is to take the bolded sentence above, and read it out loud during his Congressional testimony, in binary language of course. The algos will take care of the rest.