'This is a global event that is taking place: a possible global consolidation that is now breaking out to the upside'
Dave Lutz of Jones Trading once hailed so-called "Commodity King" Dennis Gartman as "the single, best contra-indicator on the planet. Worth his weight in gold." Gold, incidentally, is down about 8% since the beginning of the year. Gartman predicted it would rally in 2018.
But let's move on to his most recent prediction. If Lutz is right about Gartman's knack for getting it wrong, it might be time to sell everything!
Excerpts from Gartman's latest missive, were posted Wednesday on Zero Hedge. They laid out a scenario in which the blue chips break out to record highs.
"If these past 6 1/2 months are indeed going to prove to have been a consolidation phase," Gartman was quoted as saying, "then huge gains, perhaps sufficient to carry the Dow to 30,000+ ... as exaggerated and as stunning as that may sound... is technically possible."
Zero Hedge used this chart to illustrate that consolidation:
And it's not just here in the U.S. markets. Gartman says "this is a global event that is taking place: a possible global consolidation that is now breaking out to the upside. Certainly, it is possible."
Zero Hedge noted it wasn't long ago Gartman sounded a lot more bearish than he does now. And by "not long ago," we're talking earlier this month when he advised readers that "this is now a bear market; trade then accordingly."
With that, expect more tweets like this:
The Dow opened slightly lower on Thursday.