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Last week he was bullish, but no more. Dennis Gartman says cash out.
“I liked stocks a week ago ," says the strategic investor and CNBC Contributor , "but technical indicators are not to be ignored.”And there are plenty of signals that suggest the market is facing headwinds. This week the euro broke below a key level against the US dollar. A stronger dollar has been negative for the stock market.
Also, the yield on the 10-year traded down to is lowest level in at least 60 years suggesting investors are willing to lose money – when adjusted for inflation expectations – because they’re so desperate for a safe haven.In addition, oil prices have tumbled, which is good for prices at the pump but bad for energy stocks.
On top of that, the CBOE Volatility index jumped more than 12 percent, the biggest spike for the "fear index" since mid-April.Plus, the S&P continues to hit resistance every time bulls try to drive it much above 1325.And, as if all that’s not negative enough, Gartman is particularly troubled by the action in the Dow Transports. “They failed to make a new high even as the DJIA continued to rally,” he says. According to Dow Theory, the Transports confirm or deny moves in the Industrials. In this case, they're denied.All told, “Get thee to a nunnery,” Gartman says. “It’s now safer on the sidelines.
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