Flip Flopping on Gold
“Commodity expert” Dennis Gartman is flip flopping on gold according to this article at the ZeroHedge blog.
Back on December 13, 2011, Gartman was making the rounds on CNBC and in the financial press telling viewers and readers that the bull market in gold was dead. Gartman stated: “we have the beginnings of a real bear market, and the death of a bull.”
Three weeks later, I guess Gartman is reconsidering his position, and in all likelihood, he is buying his gold back at a price greater than he sold. Oops! One has to wonder what has caused Gartman to change his mind so quickly considering that nothing has changed. The fundamentals haven’t changed. The technicals haven’t changed. I would also be curious to know if Gartman is just buying gold for himself or if he is he buying for his clients as well. In the previous “call” he stated to having sold his own gold holdings but not that of his clients. Being the cruel beast that the market can be, I am sure he sold his clients’ positions just as gold reversed higher.
Figure 1 is a weekly chart of the SPDR Gold Trust (symbol: GLD). A close above the key pivot at 157.18 on a weekly closing basis would suggest that march higher for gold can resume.
Figure 1. GLD/ weekly
For the record, Mr. Gartman made his proclamation on December 13, 2011. Since that time, I have written 6 articles espousing the bull market in gold. On December 14, I wrote: “Gold: It is Still a Bull Market”. I looked at gold from the perspective of interest rates, the dollar, and the technicals (here and here). I even wrote a piece on bull market dynamics. All this suggested to me that the bull market in gold is not over.
As stated above, confirmation of my opinion will occur on a weekly close above the key pivot at 157.18 on GLD.
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Category: Gold
Gartman is a worthless windbag. I honestly don’t know how to assess him as he’s always shooting off in every which way. Clearly he’s just trying to manipulate the public in some way whenever he says something. Endlessly aggravating that these type of people get trotted out as experts.
But then again, he’s shown himself to be a great contrary indicator! So maybe he’s not so bad after all. LOL