With the BTFD algos showing some uncharacteristic hesitancy this morning, Dennis Gartman’s overnight commentary may provide just the catalyst they need to do their sworn duty and ramp stocks into the green within minutes of the cash open for one simple reason: Gartman fears a bear market of “some serious vintage” is now be upon us.
As excerpted from his latest overnight letter to clients:
STOCK PRICES ARE UNIVERSALLY WEAKER THIS MORNING as all ten of the markets comprising our International Index have fallen and as two of the ten… the markets in Japan and in Brazil… have fallen by more than 1% with the former down 1.5% as we write and as we finish TGL and with the latter down a truly material 2.3%. In the end, our Index has fallen 86 ‘points’ or 0.7% and is down 175 ‘points’ from its all-time high of 12,012 on Thursday of last week, or 1.4% below that high.
We note the ‘universal’ nature of the weakness for having all ten markets moving in the same direction is indeed quite rare and historically this occurs at major turning points; that is, the lows were made back in the spring of ’09 amidst panic, final liquidation of stocks when we had one or two days of universal weakness followed by a day or two of universal strength. That was a major turning point, obviously. Further, the interim lows made in January of this past year were accompanied by one day of ‘universal’ movement, and there are other examples that we can recall when prices moved in ‘universal’ terms and which marked major turning points. Today’s ‘universal’ weakness…only a week from the global market’s all-time high… is a harbinger of further material weakness we fear and sets the stage for the start of what we fear might well be a bear market of some serious vintage.
This post was published at Zero Hedge on Nov 15, 2017.
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