With few in the market knowing what to do in the aftermath of Brexit (aside for chasing quarter end widow dressing of course) at least according to Citi, one voice of confidence has emerged: that of Dennis Gartman. For those interested in the “world-renowned commodity expert’s” take, here is what the CNBC fast money staple is doing as of this morning.
REGARDING GLOBAL EQUITIIES DEAD CATS DO INDEED BOUNCE, and that is the lesson one is the learn from the massive, sharp rally that has taken place in the global equity markets as all ten of the markets comprising our International Index have risen in the course of the past twenty four hours, with nine of those ten rising by more than 1% and with two of them rising by more than 2%. However, in light of the massive declines that had taken place the previous two trading sessions we are willing to see the strength of the past twenty four hours as a much needed “Dead Cat Bounce,” and nothing more. Further, it is very worth noting that the volumes on the bounces yesterday were demonstrably less then were the volumes on the breaks Friday and Monday, and if the trend is to follow the volume then the trend is still down.
Yesterday we asked the question, “Can the S&P futures rally back toward 2040-2050 in the course of the next few days?” We asked if the EUR StOXX 50 futures could make its way back toward 2825-2850 and could the Nikke futures “bounce” to 15,750-15,850? Our answer was in all three cases, “Of course they can and again it shall be proper to be a seller there.” As we write, the S&P futures are trading 2034;the EURO STOXX 50 futures are trading 2788 and the Nikkei futures are trading 15,645, so all are approaching our targets to the upside. We shall have orders in the markets today to sell the mid-points of all three indices; that is, we’ll sell the S&P futures today if 2045; we’ll sell the EUR STOXX 50 at 2837 and we’ll sell the Nikkie futures at 15,800… two thirds of a unit for each so that we’ll be short of two units in total if all are filled, risking only 2% on each position from the outset.
And to think just one week ago Gartman said “The Trend Is, Has Been And Shall Be Upward.”
It would appear new all time highs are in store.
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