If anyone is wondering what the reason is for the nearly 50 point reversal (which is huge) on the ES since last night, ZeroHedge identified it earlier today. I think we’re all quite weary of all things Gartman, but I must be plain on this one point: more than anything else, it’s his writing style that drives me right up the tree. Here’s the excerpt from last night, as quoted by our friends over in Tyler-ville. Please take note of the flowery, faux-elegant language:
This bear run is not over. There is more to be gotten on the downside. If we must put forth a target to the market’ downside we can suggest accepting Goldman Sachs’ latest estimate for earnings by the S&P listed companies of $110-$115 this year. If we apply a still higher than average P/e of 15 compared to the present level, that give us a target to the downside of 1690; a 16 P/e gives us a target of 1800 and in the broad scheme of things those are not illogical targets to the downside.
We shall strongly urge those who are still aggressively long of equities to become less so; we shall urge those who are upon the sidelines and are “punters” rather than long term investors to err obviously on the short side and we shall urge long term investors who’ve been fortunate enough to have gone to the sidelines to do what they can and what they must to convince themselves that things are not yet “cheap” enough to warrant even nibbling at equities. Patience and discretion shall be… as they always are… the far better parts of investment valor.
Word count: 193. Now allow me to write exactly the same thing using what Slope patron saint George Carlin lovingly described as “simple, direct, honest language”. Take note that there isn’t a single concept or idea that is absent when you compare my words to those above:
The bear run is not over. If earnings for S&P listed companies is $115 this year, as Goldman suggests, and we apply an average P/E of 15, that gives us a downside target of 1690.
Those who are long equities should consider reducing their exposure, and speculators should consider shorting. As always, patience and discretion are worthy virtues.
Word count: 58, a savings of nearly three-quarters. Plus you are spared any nausea that might be induced from trying to cut through any obfuscations on my part. You’re welcome.
via Zero Hedge http://ift.tt/20qXq4s Tim Knight from Slope of Hope