Tags: Dennis Gartman | stock market | timing | invest

Dennis Gartman: I Timed the Stock Market Wrong, 'I Want Out'

Friday, 16 August 2013 08:23 AM

Investor Dennis Gartman admitted his recent market predictions and trades have been "terrible" and he's now ready to bail out of the quickly sinking stock market.

"The market is telling me that I'm wrong. I'm going to the sidelines," Gartman, founder, editor and publisher of The Gartman Letter, told CNBC.

U.S. markets have been hammered this week by disconcerting reports from retailers. Wal-Mart, Macy's and Nordstrom all cut their outlooks for the year.

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Thursday, the Dow Jones Industrial Average slumped 225 points, its worst day in nearly two months. Investors also dumped bonds, driving the yield on the 10-year Treasury note to its highest level in more than two years.

Gartman asserted he has made successful calls in other markets, including long positions in cotton, gold and natural gas. "But my trades in the stock market? Terrible. I want out," he said.

"If a market moves and gets me by 2.5 or 3 percent, that to me is an egregious move. It tells me that I'm wrong," he said.

He warned that the stock market tumble could extend for the next few weeks, amid uncertainty about Egypt and the Federal Reserve's tapering strategy — and simply because of the "summer doldrums."

"Let Labor Day come, let everyone come back from the beach," Gartman said. "Let's see what kind of buying we have first week in September."

For now, other experts have warned to trade with caution. Pimco CEO Mohamed El-Erian said financial markets are waiting for a range of issues to be resolved.

"The risk markets — stocks, high-yield bonds — are basically treading water at this stage and getting tired, because we've priced in a lot of good news," he told CNBC.

Among the looming issues are the U.S. debt ceiling, the U.S. government budget, President Barack Obama's selection of a new Federal Reserve chairman, a possible tapering of the Fed's quantitative easing, German elections and issues in Greece, Portugal and Japan, El-Erian explained.

"So, a lot of stuff has been pushed back on purpose in September and October, and I think the market here is just going to wait for greater clarity," he noted. "That clarity is not going to come very quickly."

Meanwhile, some investors cautioned against reading too much into Thursday's drop.

"It seems like an overreaction today," Randy Frederick, managing director of active trading and derivatives at the Schwab Center for Financial Research, told The Associated Press.

Corporate earnings are solid and the economy is improving, he noted.

The stock market hit an all-time high two weeks ago. The Dow is still up 15 percent in 2013; the S&P 500 up 16 percent.

Editor’s Note: Weird Trick Adds $1,000 to Your Social Security Checks

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Investor Dennis Gartman has admitted his recent market predictions and trades have been "terrible" and he's now ready to bail out of the quickly sinking stock market.
Dennis Gartman,stock market,timing,invest
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2013-23-16
Friday, 16 August 2013 08:23 AM
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