Dennis Gartman, publisher of “The Gartman Letter,” is a very smart guy and (paradoxically) a trader. I have always said trading is very difficult, and that those who do it well are not only very clever (few and far between), but may have special instincts that allow them success. They guess right more often than they guess wrong. They are quick to admit their mistakes, take their lumps and move on…something most people are unable to do, especially when dealing with their own money. Nonetheless, despite his propensity to trade, Gartman’s longer-term perspectives are interesting and thought provoking. I find him to be an interesting voice in the forest of noise.
“A condition where a security’s price heads in one direction, but then is followed quickly by a movement in the opposite direction. The origin of this term is derived from the push and pull action used by lumberjacks to cut wood with a type of saw with the same name.”
Mr. Gartman gave us a quintessential whipsaw between April 4th and April 21st. For those who followed Gartman’s aggressive SELL advice, Friday April 4, and were spooked out of the market (or at least some of their holdings), unless they subscribed to “The Gartman Letter” they would not have received the BUY flash issued the very next week. He did not come back on CNBC to sound the ‘all-clear’. Importantly, CNBC viewers would not have been aware of this unless one of the panelists on “Fast Money,” April 21st, asked Gartman about his current stance on the market…to which he replied, “Pleasantly long.”
“Wait, wait, hold on!”
This was the non-plused reaction of “Fast Money” host Melissa Lee, who went on to say “You were scared out of equities and now you are ‘pleasantly long!'” Gartman then contended (briefly) that he was on the show the previous week reversing his position. He quickly pivoted to indicate he issued the BUY in his market letter. Obviously, he has a pipeline into CNBC and should have trumpeted his change of heart there, after he issued his market letter. The change had to be dragged out of him…very bad form Gartman. The videos never lie.
The lesson is that if you listen to these prognostications, you have to be prepared to be the last one to know when the opinion changes. This holds true even when you are dealing with the most respectable pundits.
What do you think?
The information presented in kortsessions.com represents my own opinions and does not contain recommendations for any particular investment or securities. I may, from time to time, mention certain securities for illustrative purpose, names where I personally hold positions. These are not meant to be construed as recommendations to BUY or SELL. All investments and strategies should be undertaken only after careful consideration of suitability based on the risks, tolerance for risk and personal financial situation.