A Major Trader Sees Shift to the Upside in Global Equities

Posted by Dennis Gartman - The Gartman Letter

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Excerpt from Dennis Gartman’s widely read around the world morning comment – <P> For subscription information contact The Gartman Letter L.C.<P> Tel: 757 238 9346 Fax: 757 238 9546 or E-mail: dennis@thegartmanletter.com


At the upper left of p.1, we’ve reproduced a chart that we think is of particular interest, and has been to us 

over the course of the past many months. It is of the Yen/EUR cross, and as we’ve said countless numbers 

of times over the course of the past two or three years, as goes the cross in broad terms… and in short terms 

too for that matter… so goes the global equity market. 



Over the course of the past several weeks and months however it appears that that correlation had been 

breaking down, and as it appeared to us that it was doing so… as the cross was moving sideways to even perhaps modestly higher… stocks were moving clearly downward.  Either the correlation had broken, or the 

cross was signaling a major change in trend.  We are now more willing to believe that the cross was 

signaling an impending change in trend in the global equity markets. We are now more and more willing to 

believe that the cross’s ability to hold its lows made in October and November of last year and its ability to 

break clearly through the well defined downward sloping trend line so evident in red in the chart this 

morning is materially important and of material consequence. AND we are more and more willing to 

believe that the cross’s ability to turn upward through its now more and more important 100 day moving 

average signals not only a changing trend for the cross, but bodes well for the global equity market.  We 

do not make these statements lightly, and we trust we 

are clear.