At this point it is virtually impossible to know if Gartman is bullish or bearish or something inbetween, so here is his latest commentary which we leave up to readers to make their own conclusions:
STOCKS, GLOBALLY, ARE FALLING PRECIPITOUSLY as all ten of the markets comprising our International Index have fallen and as six of the ten have fallen by more than 1%, with the German market having fallen 1.99% and leading the way lower. We’ve not see this sort of severe, universal weakness in the equity market since February of this year and we do believe that this is the most severe one-day bout of weakness of the year-todate [Ed. Note: Because we write TGL “on-the-fly” each morning and because we’ve no staff on hand to check these sorts of things, we will do the checking later today when we’ve the time to do this sort of thing, but certainly this is one of the five worst days to the downside of the year and one of the ten worst in the past several years.].
On Thursday of last week, we wrote the following regarding an inevitable bearish move by the equity markets:
There may come a time when we watch as the Dow Industrials open 500 or more lower upon the day following some unforeseen geopolitical circumstance that weighs heavily upon equities, and when the Dow remains archly lower through noon. That the shall be the signal to be short of equities.
On Friday, the Dow opened nearly 200 lower rather than the aforementioned 500, but stocks failed to rally intra-day other than ever-so-slightly from time-to-time and the Indices closed hard upon their lows. Equities in Europe did the same; the markets opened lower; stabilized for a short while and then closed hard upon their lows also. It was then, and it still is now, a rout to the downside with markets “gapping” lower.
Further, we note that the CNN Fear & Greed Index made its way to 75 and has turned sharply lower… an ominous sign for equities here in the US. Given that downward spike in CNN’s index, and given what happened Friday as noted above, and given the material weakness in Asian shares, and given the flight to safety taking place in Europe as the EUR/CHf cross has collapsed… and is collapsing… all we can say is that weakness is not to be bought and that any sort of inter-day strength is to be sold into.
We have viewed the stock market with a sense of fear and very real concern for months. We have erred in having done so all the while for this was a bull market and those who traded resolutely bullishly were paid handsomely for their trades. For that reason, we are fearful of turning too bearish of equities at this point for fear of making the same mistake again. But we know one thing and we know it well: when we are reticent to act that is precisely the time we are to act. The market is a harsh mistress.
GLTA.
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