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“We Are Stunned” Gartman Rages After Getting Stopped Out Of Nasdaq Short

Courtesy of ZeroHedge. View original post here.

Yesterday morning, we delivered a present to tech longs when we reported that after one week sabbatical since his latest disastrous reco (to short WTI just hours before it exploded higher), Dennis Gartman told his few clients he had just gone short the Nasdaq.

NEW RECOMMENDATION: We’ve been abundantly bearish of equities for the past several weeks, but we’ve failed to put that bearishness to test “officially” in a recommendation and so we shall do so this morning, wading in to sell the NASDAQ futures anywhere above $6560 as it trades $6564 as we write and finish TGL. We’ll risk 1.5% on the trade and we look for $6000 to be taken out to the downside sooner  rather than later. Indeed, should 6400 be taken out today we’ll add to the position immediately

Unfortunately, the trade did not work out quite as intended, and just an hour later, the Nasdaq soared tripping Gartman's +1.50% stop loss limit.

This morning there is the always amusing post-mortem from the "world-renowned commodity guru."

We were bearish of shares coming into yesterday, before the ECB’s non-decision decision and before we listened to Dr. Draghi’s postmeeting press conference, but as we listened to Draghi’s comments it became painfully clear to us that we were wrong in suggesting…and then officially recommending…a net short position in equities. If the monetary authorities are not going to err contractionarily and are, instead, going to continue their experiment with QE we shall have to adapt. We have no choice.

Hence, we were wrong in being short into yesterday’s market and fortunately we had a stop that cost us 1 ½%. We shall call that fortunate; it felt like it could not have been a worse idea, but indeed by the close it proved it could have been a great deal worse.

The "explanation":

Turning to the “action” in the last few minutes of futures trading in the NASDAQ yesterday, we are still stunned by the 100 “Big Figure” rush to the upside that took place even as the S&P, Dow and Russel futures were quietly selling off. We must believe that someone one in a position of authority “knew” about Amazon’s “blow-out” earnings report which was made officially public only moments after 4:00 p.m. There really cannot be any other explanation! [sic]

And the formal closing:

Why the NASDAQ 100 shot up 100 handles in the last five minutes of trade is open to debate… and we wrote about that above… but it did and fortunately we were stopped out a full 1% below the closing level. We are growing weary of this sort of thing, but at least we kept this to a 1 ½% loss on a single unit. At least that! ‘Tis small solace, however.

So what now? Well, it appears that the "guru" is long once again:

As for our retirement account, we made no changes and remain long of cotton, long of gold, long of the shares of a business development company and long of the shares of a primarily Australian and New Zealand short term government bond fund traded on the NYSE. We also held our short derivatives position but will be cutting that back rather materially today and will be looking about for things to buy that make “the things that if dropped on your foot shall hurt.” Trains; steel; shipping; farm equipment… things such as that; things that can be counted; things that pay dividends; things with real earnings; that sort and those sorts of things.


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