This brief initial 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:firstname.lastname@example.org HERE to subscribe at his website.
SHARE PRICES HAVE MOVED VERY LITTLE as or Int’l Index has risen 10 “points” in the past twenty four hours and which we take as a rather bearish circumstance for given the enormity of Friday’s weakness we would have expected a bounce of some reasonable magnitude the day after. Instead the dead cat bounced not at all. Try as we might, we fail to see anything bullish in the action of the past three or four days, as one important trend line after another is broken; as the volume on the weakness is demonstrably larger than was the volume on the strength early last week; as inside selling continues to be high and is rising; as P/e multiples are stretched rather far, with hopes for continued increased earnings in jeopardy given that all of the earnings growth thus far has been predicated upon cost cutting rather than upon sales growth… and we could go on but our point is made we think.
Ed Note: Below from Don Vialoux’s Tech Talk. Be sure to go to his site and read his recommended articles.
Technical Action Yesterday
Technical action by S&P 500 stocks was quietly bearish yesterday. One S&P 500 stock broke resistance (Clorox) and five stocks broke support (Amerin, Dean Foods, Denbury Resources, Pinnacle West and Southern Companies). The Up/Down ratio dipped from 2.21 to (288/131=) 2.20.
Technical action by TSX Composite stocks also was quietly bearish yesterday. No TSX stocks broke resistance and two stocks broke support (Imperial Oil, TransForce). The Up/Down ratio slipped from 2.38 to (129/55=) 2.35.
….read much more HERE. including articles on ETF’s, Seasonal patterns and Market Timing.
Editor Note: I highly recommend a regular monday visit to Don Vialoux’s site where he analyses an astonishing 50 plus Stocks, Commodities and Indexes.
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.