Monday, June 12, 2017

Banks VS FANGS - Buying opportunity

The stock markets punished US tech stocks last week, and biggest tech names saw the worst of it. Apple, Alphabet, Microsoft, Facebook and Amazon — lost more than $97.5 billion in market value between the close on Thursday and the close on Friday.

Shares of Apple fell nearly 4 percent on Friday, while the other four companies fell more than 3 percent. However they are near the trend line supports and this may represent a wise buying opportunity.

According to Dennis Gartman,

"We have included the chart of the NASDAQ at the lower left of p.1 this morning, noting that the lows on Friday amidst sheer panic selling in the early afternoon took the Index to a trend line that we extend back to the lows of last July, although we show it only into the lows of mid-April of this year. It shall take courage on our part to believe that the bull market is still intact, but in fact it is. Thus, if the NASDAQ were to fall back toward 5675 or so today we shall have to be a buyer, for as Old Turkey would remind us, “After all, this is a bull market.” Further, a drop to 5675 shall only be a 3.8% correction from the peak. 
Finally, if the NASDAQ does test those lows, our urge shall be to own banking shares above all else for the banks did amazingly well on Friday, rising smartly even as the FANGSs were collapsing, predicated upon the Fed moving to tighten monetary policy at its meeting this week and thus widening net-interest income for the banks… the real driver of bank earnings. Regional banks, especially, may be best served, with the ETF soaring 3.1% on Friday and breaking out to the upside. Any periods of weakness this week are to be bought."


www.zerohedge.com/news/2017-06-12/gartman-nasdaq-one-day-will-collapse-buying-today-weakness-should-be-wise 

Monday, June 5, 2017

Bitcoin volatility is senseless and these things usually end in tears

The boom in the digital currency Bitcoin is extraordinary. Bitcoin has jumped about 150 percent just this year to trade at $2,445.20 on Friday Anyone smart or lucky enough to have bought $1,000 of bitcoins in July 2010, when the price stood at $0.05, would today now have a stash worth approximately $46 million. 

Here below is what Commodities King - Dennis Gartman makes of Bitcoin.



Click here if the above video does not play

Tuesday, May 30, 2017

Gartman bullish on Technology

"We stand in awe of the sheer relentless nature of the global bull market. Unlike the parabolic rise by Bitcoin, for example, the trend from the lower left to the upper right in global equity prices is measured… is reasonable… is relentless and is, in the end, majestic in nature. It will stop when it stops and not a moment before. Every time we think that the market is overbought, it consolidates and moves higher.

It is interesting then to note that the CNN Fear & Greed Index has been “locked” in recent days a few points either side of 50, where 50 is evenly balanced between the bullish and bearish forces at work. When the Index is below 20 and has turned higher, the market is oversold and due for a rally. When it is above 75 or so and turns down, the market’s over-bought and due for weakness. But at 50 it is neutral… utterly and completely… allowing the trend at hand to obtain a while longer and the trend at hand is clearly a bullish trend.

In retrospect we allowed our prosaic, old-guard beliefs in simple things to color our view of the markets; that is, we have tended to err, even when bullish of stocks, to own metals, trains, boats, bearings et al. As always, we’ve wanted to own them when instead we should have understood the disruptive nature of modern technology and should have been buying the things that are either replacing these simple things or are making these simple things better.

We shall never be able to step into the pharmaceutical equities for we are not able, nor willing, to make implied bets upon whether a drug in place shall meet FDA approvals or not. We’ve not that expertise, nor shall we ever have it. However, we should be able to ascertain what companies will make mining better; what companies will help run railroads run more efficiently; what high-tech companies will replace crews on ships with autonomy et al. That we have to do; that we shall do. The game has changed and so must we."


via ZH