Gartman says once interest rates on the 10-year went above 5%, projects that private equity thought might be viable become non-viable. Although Gartman thinks we’re in a long-term bull market, he says the Dow could drop another 500-600 points. He adds corrections usually take 2 – 3 weeks.
Friday morning Gartman expects the stock market to open higher but if there’s weakness around 10am he anticipates another bout of selling.
What’s your first trade of the day on Friday?
Gartman says he’s long Athabasca Minerals (ABM) and Apple (AAPL) and some of the Canadian natural gas funds. And he’s long SHORT DOW 30 PROSHARES TR (DOG) and UltraShort S&P500 ProShares (SDS).
Eric Bolling tells the panel this morning he was short S&P and NASDAQ but when Google (GOOG) turned positive he sold some of his short position in the NASDAQ.
Pete Najairan expects the selling to last a while, volatility is back in the market, says Pete.
Jeff Macke tells investors if they’re concerned about weakness, sell equities rather than try to hedge the volatility.