This may come as a shock to some, but Dennis Gartman may soon be 3 for 3 in his latest market-timing recos.
Back on November 8, following the mid-term election market surge when trader hopes for another BTFD moment briefly peaked (before being promptly snubbed) and JPMorgan’s Marko Kolanovic tripled down on his bullish call for stocks, one prominent contrarian voice emerged when Dennis Gartman said that he was “officially recommending shorting this rally.” In retrospect he was spot on with stocks tumbling, broadly ignoring the JPM bullish case.
Then, on Monday, just ahead of a broad market rebound and Wednesday’s Powell-inspired surge, Gartman flipped again, and said he was covering his “material short position for a very short while”, although as he added “covering our short positions does not mean even for a moment that we are turning bullish of shares and shall be buying them to be long for we are not and we shall not.”
Indeed it did not, because on Friday morning with futures set to slide ahead of tomorrow’s G-20 dinner between Trump and Xi, Gartman U-turned again, and as he wrote in his latest daily note, the time has come to short stocks again, if for now only in his retirement account, and not yet “officially” as a recommendation. To wit:
We are reiterating the point one more time… truly putting redundancy to test yet again… that covering our short position earlier this week did not mean then and does not mean now that we are turning bullish of shares and that we shall be buying stocks for the long term for we are not; we have not and we will not. Being as clear as possible, we state once again for the record that this is a bear market in broad, global terms and as we have said all week this week, in bear markets one can have but one of three possible positions: very short of shares; modestly short of shares or, finally, neutral of them. So it has been… and is still… to the sidelines for us, where we have been all week. But it may be time to re-enter the short side. We’ve actually done so in an exploratory and thus very small fashion in our retirement account although we are not “officially” making that as a recommendation… yet.
Will this mark the 3rd consecutive time that Dennis Gartman has been correct in the span of just three weeks? If so, it would be a 12-sigma, but more importantly, it could put an entire industry of Gartman-fading algos out of business. Stay tuned.
via RSS https://ift.tt/2zztkGi Tyler Durden