FYI | Apr 14 2011
By Rudi Filapek-Vandyck
Declining volumes, erratic price movements, but above all, an exuberant investor mood seem to be conspiring to take US equities down in the weeks ahead. Such is the expectation from US-based market trader and daily newsletter publisher Dennis Gartman.
In the latest edition of The Gartman Letter, mailed out to subscribers worldwide prior to the opening of yesterday's trading session (closed this morning), Gartman observes while looking at a price chart for the Dow Jones Industrial Average:
"The trend remains upward, doesn’t it, and until the trend line is broken we have to trade bullishly on balance. However… and this is a “big” however… we can readily imagine that the market will try to put this trend line to test and we shall be surprised if the Dow were not to trade down to and below 12,000 over the course of the next several weeks."
Also, in support of his view for a weaker equities market, Gartman notes a recent poll by Barron's in the US has revealed the gap between bulls and bears has widened to a distance not seen since late 2007, when global equities peaked. Again, in February-March last year the gap between bulls and bears had approached these levels and equities started selling off about one month later.
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.