FYI | Nov 21 2011
By Rudi Filapek-Vandyck
As reported by FNArena last week, US based trading guru Dennis Gartman had joined the ranks of many a market strategist believing that, despite ongoing uncertainty hanging over Europe, US and global equities were likely to grind higher into year-end, but his cautious optimism has been squashed by price action leading into the weekend.
Reports Gartman in Friday's edition of daily The Gartman Letter: "it appeared to us that the huge consolidation that had been forged on the charts of the Dow, the S&P, the Russell and the NASDAQ indices all looked to us to be mid-point consolidations. Clearly that was wrong and now what had been support for the market becomes overhead resistance."
Equally noteworthy is that Gartman decided it's better to temporarily abandon his bullish view on gold. "Is the bull market still intact for gold?", he asked rhetorically on Friday. "Yes, of course it is, but the short term is wrought with danger and we’ve no choice but to use rallies today and perhaps Monday to lighten up our positions a bit. Really, we’ve no choice. We have to live to fight another day."
While most gold bulls will be awaiting a break-thought in the German resistance to ECB QE, Gartman believes "margin clerks reign supreme" in commodities markets and that "is the only fundamental that matters at moments such as this".
See also "Brokers Starting To Grow Horns", Nov 17.
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.
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