This brief comment from the Legendary Trader Dennis Gartman. For subscription information for the 5 page plus Daily Gartman Letter L.C. contact – Tel: 757 238 9346 Fax: 757 238 9546 or E-mail:dennis@thegartmanletter.com HERE to subscribe at his website.
THE EUR VS. THE US$: A “Reversal” Of Fortune?: Note then the fact that the EUR “reversed” to the downside yesterday; that is, having made new high vs. the US$ the EUR traded lower and below the previous day’s low, grabbing our attention. However, the case for a weaker EUR is not truly made until this well defined trend line is well and truly broken.
THE TRANSPORTS: A Trend Line Under Duress: Depending upon the thickness of one’s pencil when this trend line is drawn, it has either been broken or is in danger of being broken, and this follows Friday’s reversal to the downside! Technically, for the broad market, this is ominous. Attention must be paid. So pay it!
Here in the US, yesterday’s “action” in the market was perhaps some of the worst we can recall seeing in a very long while. The market opened higher; it rose sharply higher, sufficiently so that the Dow was 110 points higher very early in the session; and it closed hard upon its lows. Had we not had a series of “reversals” to the downside last week that take precedence, we’d be reporting yesterday’s action as near classic “reversal” to the downside. One by one lesser lights in the market were taken out behind the proverbial barn and shot, although the greater lights… the Apples, the Goldmans, and now the Amazons et al held well compared to the rest of the market. We fear they too may be taken out and shot sooner rather than later, for the margin clerks are now sharpening their pencils and when they do they are merciless. As we like to say, and as we have said time and time again, “When they raid the house of ill repute, the good girls and the piano player too go to jail.”
Mr. Gartman has been in the markets since August of 1974, upon finishing his graduate work from the North Carolina State University. He was an economist for Cotton, Inc. in the early 1970’s analyzing cotton supply/demand in the US textile industry. From there he went to NCNB in Charlotte, N. Carolina where he traded foreign exchange and money market instruments. In 1977, Mr. Gartman became the Chief Financial Futures Analyst for A.G. Becker & Company in Chicago, Illinois. Mr. Gartman was an independent member of the Chicago Board of Trade until 1985, trading in treasury bond, treasury note and GNMA futures contracts. In 1985, Mr. Gartman moved to Virginia to run the futures brokerage operation for the Virginia National Bank, and in 1987 Mr. Gartman began producing The Gartman Letter on a full time basis and continues to do so to this day.
Mr. Gartman has lectured on capital market creation to central banks and finance ministries around the world, and has taught classes for the Federal Reserve Bank’s School for Bank Examiners on derivatives since the early 1990’s. Mr. Gartman makes speeches on global economic and political concerns around the world.