“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.
- ARL Advisers has 3 portfolios: Conservative, Broad Market, and Aggressive
- Use of proprietary models and a research driven methodology to determine those factors that lead to sustainable market moves
- Diversification across equities, bonds, real assets, and currency
- Personalized service
ARL Advisers: Strategic. Balanced. Targeted.