Gartman: “This Is Now A Bear Market”
by Tyler Durden
ZeroHedge.com
Thu, 07/05/2018
The recent whiplash in the market has wreaked havoc on both momentum and trend-following following strategies, and traders, among which none is more iconic, or vocal, than Dennis Gartman. That said, the “world-renowned commodity guru” is even better known for calling contrarian inflection points, having been stopped out at a loss on 80% of his recent “recos.”
As such we have some bad news for the bears: after a somewhat bullish transition phase in which Gartman advocated for higher prices despite making a “watershed call” in March, predicting a multi-year top to the market, he is once again pessimistic, and in his latest daily letter published around 4am this morning writes that a bear market has begun. Which may well explain why stock are surging today. To wit:
Getting to the numbers, our Index has fallen 30 points or just a bit less than 0.3%, but that puts it down 372 points for the year-to-date or down 3.1%. Again, however, far more important… at least in our opinion… is that as of this morning our Index is down 1072 “points” from its high in late January, or -8.3% from that high. Again, as we have said rather often recently, once a market is down more than 7% from its high we are of the opinion that a bear market has begun. Others constantly iterate that it takes a 20% drop in a major index to prove that a bear market has begun in some earnest, but we are of the mind that if one only begins to take defensive action to protect one’s wealth after a market has fallen 20% much… and in our eyes, far too much… has been lost by that point!
The Rest…HERE
