Once again Dennis Gartman is making headlines with his call on gold.
"The market is saying we need to be sellers!" the strategic investor and CNBC Contributor tells us. ”Gold is not acting well."
Gartman turned bearish over only the past few days largely due to concerning technicals. “The highs made in September were demonstrably above the October highs which were above the current highs. And we’re breaking trend lines.”
In other words the gold charts are making a series of lower highs – a bearish sign and something many chart watchers considers quite telling. ”Listen when the market talks to you,” Gartman says.
And Gartman is putting his money where his mouth is. He’s sold all the gold in his personal account.
You probably know all that - Gartman's call got a lot of attention across all media. But what you might not know is that he only suggests re-thinking your position - if you're a trader.
"Gold could move lower by $150 in the twinkle of an eye, and that’s too much for me!" he says as a pro who moves in and out of positions with ease. "But that won't destroy the long-term bull move."
Now if you're a long-term investor that last sentence was very important. Gartman is making a trading call. He still thinks the long-term bull trend remains in tact - with gold still moving from the lower left to the upper right.
If you have a time horizon of a year or more, you don't need to do a thing. However for traders, "it’s time to be neutral."
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As you might remember Dennis Gartman made a similar high profile call back on August 24th – and it turned out to be prescient.
”I pay great attention to something technicans call an outside reversal – that is, the market made an all-time new high – closed on the lows of the day – then closed below the previous day’s lows. If you don’t pay attention to that and don’t liquidate you’re going to find yourself in a lot of trouble.”
Since August 24th gold is down well over 10%.
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