While correlation does not equal causation, first thing yesterday morning, just as the Dow Jones was reversing all of its overnight losses, and was set to surge by over 500 points at one point, we previewed one notably "correlating" catalyst: Dennis Gartman announced "we are net short via derivatives."
Gartman: "we are net “short” of the market via derivatives in sufficient size to have taken us to a net short position"— zerohedge (@zerohedge) March 5, 2018
So after yesterday's furious ramp, has Gartman covered his short? With condolences to the bears, the answer is no, and in fact it's worse: Gartman is no longer short simply via derivatives (which we assume means pair trade puts), but is now outright short the S&P again.
NEW RECOMMENDATION: We have waited for strength into which to sell equities short and we got that strength yesterday when the President ‘Hinted” that he might actually move to exempt Canada and Mexico from steel and aluminium tariffs if they acquiesce on some demands to renegotiate the NAFTA. But again, the rally was on reduced volume compared to the volumes that came into the markets last week on weakness. This is how a bear market acts; now how bull markets act. We shall sell the S&P short this morning upon receipt of this commentary and the nearby S&P future is trading 2724.50 as we write. A 2% risk is more than sufficient at this point.
As a reminder, the last time Gartman went short - just a few weeks ago - he was promptly stopped out just days later. At this point, bears may be wise to wait the S&P to rise 2% before shorting.
Here is Gartman on the new world of male/femal communications, a "world we do not like at all":
Finally, in the modern world of male/female communications that have become a pool of sinking sand for anyone caught on the wrong side of the problem by the “police” now patrolling the environs…in a world where one cannot say to a friend at work that they look nice or that the dress one is wearing looked lovely… in a world when a gesture of good-will can be seen as a gesture of sexual harassment… in such a world even a innocent jokes between a member of Congress and a subordinate can get that member of Congress nearly expelled or perhaps forced to stand down… we are careful. This time, however, it is a female member of a legislature that was caught in the modern clutches of political correctness.
We do not like this new world… at all. When our cleaning staff is in the office, they are to be there only when more than one of the TGL staff members is present, fearful of potential claims that might be filed if only one of us were there. When we are at our club, we can no longer refer to the wait staff in the “familiar” ways of years past, fearful of potential claims. When we bump into anyone on the street by accident, we have to be fearful of potential claims. We do not like this new world and we are hoping that these fears are reaching their crescendo, but at the moment, having read of the charges against Ms. Christina Garcia, a female member of the California state legislature who has been charged with sexual harassment, we are concerned that worse, not better lies ahead. This has become a witch-hunt and no one is being well served …or exempt.