Tuesday, December 17, 2013

Gartman reason for continued rally

Investors must continue to obey the charts. Dennis Gartman believes the rally in stocks will continue, and he draws upon his years of trading experience to make that determination.

"I will simply use an old man's view of the market, and say it's been moving from the lower left to the upper right," the editor and publisher of The Gartman Letter said on Tuesday's "Futures Now." "Weakness has been properly purchased and strength has been improperly sold. It will continue to go up until the trend lines are broken—and right now they are far from being broken."

"Write this down: 'It will continue to go up until it stops. I've only been at this 40 years, but I'm constantly amused by attempts to discern where the top shall be, or conversely, where the bottom shall be. Stocks stop going down when they stop. Stocks stop going up when they stop. That's the best you can do."

On Higher Treasury Yields
"I've been at this for a long time. I remember trading the 30-year [bond] with a 14.25 coupon. So does 2.85 on the 10-year, does 3 percent on the 10-year, does even 4 percent on the 10-year frighten me? Not really," he said. "So that's just a perspective of history."

On the S&P500 year 2013 target price

"I suspect that the propensity to take [stocks] to new highs is probably limited. ... I suspect that the propensity to try to sell it down from current levels is limited," Gartman said. "I wouldn't be surprised if they closed exactly where they are right now."