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.
What do you think? We want to know!
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Posted by CNBC's Lee Brodie
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Trader disclosure: On May 30, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Brian Kelly is long WFC; Brian Kelly is long INTC; Brian Kelly is long XHB; Brian Kelly is long PWR; Brian Kelly is long MSFT; Brian Kelly is long VZ; Brian Kelly is long T; Brian Kelly is long ADM; Brian Kelly is long XLU; Brian Kelly is long AAPL; Brian Kelly is short EUROSTOXX 50; Brian Kelly is short FTSE 100; Brian Kelly is short CAC40; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long SBUX; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long WFM; Joe Terranova is long AAPL; Joe Terranova is long NXPI; Joe Terranova is long LPX; Joe Terranova is long SNDK; Joe Terranova is long CNX; Joe Terranova is long LQD; Joe Terranova is short JUNE MINI S&P FUTURES; Stephen Weiss is long UVP; Stephen Weiss is long EUO; Stephen Weiss is long T; Stephen Weiss is long VZ; Stephen Weiss is short X; Stephen Weiss is short JCP; Stephen Weiss is short MT; Stephen Weiss is short CMI; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU
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Jeff Kilburg is long US10Y
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Gartman is long JPM
Gartman is long JNJ
Gartman is long PG
Gartman is long VZ
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