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Having Missed Friday’s Move, Gartman Is Looking To “Reestablish Net Short Positions”
On Friday morning, ahead of Congressional and market rollercoaster resulting from the Republicans’ failure to repeal Obamacare, we reported that Dennis Gartman had “moved to the sidelines” and covered his recent short:
Regarding positioning… and please do remember that the only money we manage is our own retirement fund and although it is only a few small millions it is still our money and we do indeed value it!… we came into yesterday’s session modestly net short of equities. However considering that the passage or non-passage of the health care legislation was a veritable coin toss circumstance we moved to cover those short derivatives positions early in the day and took to the sidelines. We remain there this morning. In our retirement account are long of several monthly dividend paying closed end short term bond funds; we are long of gold in EUR and Yen denominated terms and at the very close of trading yesterday we took small “punts” on the long side of crude oil.
Fast forward to Monday morning, when Gartman had this to say about the overnight action:
STOCK PRICES, AS MEASURED BY OUR INT’L INDEX, ARE UNCHANGED or actually be perfectly precise our Index has lost 1 point since we marked it here on Friday; however, as everyone should know by now, the stock index futures here in the US are sharply lower following the “collapse” of the health care legislation in the US House of Representatives on Friday.
To be sure, he laments having covered his short:
We had been net short of equities coming into Friday morning, but given the purely binary bet that one was making relative to the US health care legislation we thought it best to “go flat” and so we did. In retrospect, obviously, we should have remained net short, but that we thought was a coin-toss “bet” and we’d prefer not making bets such as that.
Yet unlike others, he is not looking for an excuse to BTFD. Instead he is hoping to find a spot where to “reestablish modest net short positions… but not today.”
Now, obviously we have to find a point at which to reestablish modest net short positions and we shall; but not likely today. Today we shall watch how things develop; we are but mice in the fields with elephants at the moment and ‘tis best to stay away from stampeding elephants when at all possible. However, we do know this: we have lagged behind a simple net long position in US and or global equity investment, but as prices weaken not only shall we catch up with those positions, but soon this week we’ll begin to out-perform… perhaps materially.
Best of luck to Dennis: at the rate the S&P is covering its opening losses, he should be able “find a point” where the S&P turns green, and “reestablish shorts” on very short notice.
Source: http://silveristhenew.com/2017/03/27/having-missed-fridays-move-gartman-is-looking-to-reestablish-net-short-positions/
