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A rogue trader scenario isn't what happened in the JPMorgan (JPM) mess, observes Dennis Gartman....

A rogue trader scenario isn't what happened in the JPMorgan (JPM) mess, observes Dennis Gartman. It seems more likely the result of a failed hedging strategy. The problems are going to get worse too, Gartman says. "I operate under the old rule that there is never just one cockroach; when ill news comes out there is usually more ill news to follow.”
Comments (17)
  • paul j schupf
    , contributor
    Comments (79) | Send Message
     
    Gartman has opinions about everything
    which seem to change daily
    11 May 2012, 09:17 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (5838) | Send Message
     
    Great, so he operates under a rule. Does it mean he is accurate? Its really a 50/50 deal. A lot of times that is a correct strategy especially with weak companies. Isn't JPM better than most?

     

    A $800M loss isn't a big deal to JPM and failed hedging strategy hardly suggests anything else is wrong. Especially considering how well it has operated under Dimon.
    12 May 2012, 02:34 PM Reply Like
  • Hitesh Patel
    , contributor
    Comments (314) | Send Message
     
    we'll see how long Dimon is still at the realm. This is going to be a 2billion loss that turns into a 20 billion loss if not more by the time it is all said and done. The sheer problem with these institutions are there SIZE. The bigger the get the more risk they take. MORALE HAZARD to the nth degree. The real question should be how are the players on the other side of the trade and how much exposure do they have.
    12 May 2012, 04:40 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    So Gartman knows cockroaches, but does he know anything else.
    12 May 2012, 07:56 PM Reply Like
  • william12
    , contributor
    Comments (30) | Send Message
     
    agree completely. he switches daily as soon as he realizes he's wrong. I use him as a contrary indicator. I'm serious.
    12 May 2012, 11:35 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (18022) | Send Message
     
    It was not a rogue trader, but the kind of action was about the same - flex muscles to make the market go in a given direction, even if irrational:

     

    JPMorgan: Trader's Actions Appear Familiar
    http://seekingalpha.co...
    12 May 2012, 11:36 AM Reply Like
  • Joe Dirnfeld
    , contributor
    Comments (1128) | Send Message
     
    Gartman has tremendous hindsight, let us vote him a genius. Mr. Cliche, why is he even referenced ? The guy has never said anything worthwhile.
    12 May 2012, 12:02 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (5838) | Send Message
     
    He does predict the past very well. lol
    12 May 2012, 02:37 PM Reply Like
  • mikeg999
    , contributor
    Comments (68) | Send Message
     
    JPM-best managed bank and most capable team to address the cause of this "fail", hold those responsible who violated policies or authorities and incorporate into lessons learned.

     

    I bought on Friday at 36.91.
    12 May 2012, 01:14 PM Reply Like
  • paul j schupf
    , contributor
    Comments (79) | Send Message
     
    Gartman has been touting DRYS on fastmoney for weeks. His description of the Company is inaccurate and he has been wrong.
    This JPM stuff reminds me of all the teeth gnashing on CNBC about AAPL whether it would survive after Jobs' passing.
    Endless yada yada and all wrong.
    Why not wait for more information on JPM.
    12 May 2012, 02:05 PM Reply Like
  • paul j schupf
    , contributor
    Comments (79) | Send Message
     
    maybe gartman should comment on dryships drys which he as touted constantly on cnbc.
    12 May 2012, 02:16 PM Reply Like
  • ipress
    , contributor
    Comments (7) | Send Message
     
    Shareholders and Directors must insist that this JPM hedging unit and their bosses share in a bonus equal to 20% of the losses, mere 400,500, or 600 plus million....its only pennies per share for their daring performance and leadership.
    12 May 2012, 02:18 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Let's be honest. This was not a hedging strategy. No hedging strategy takes up a significant amount of an index.
    12 May 2012, 02:43 PM Reply Like
  • Uncle Pie
    , contributor
    Comments (2723) | Send Message
     
    Mr. Gartman gets a lot of ink for someone who seems adept only at restating what is already obvious.
    12 May 2012, 06:44 PM Reply Like
  • 867046
    , contributor
    Comments (398) | Send Message
     
    The interesting thing is that these type of trading jobs are staffed by high GPA Ivy Leaguers.
    12 May 2012, 10:24 PM Reply Like
  • Khanh Hoa
    , contributor
    Comments (7) | Send Message
     
    Dennis Gartman is the Jesse Jackson of Wall Street...i.e. Johnny On The Spot...alias Mr. Knowitall.
    12 May 2012, 10:56 PM Reply Like
  • darkstar69
    , contributor
    Comments (62) | Send Message
     
    Whether or not you like Dennis Gartman is not really important. In this particular instance, what he says has credit on face value all by itself. Don't judge HIM in this particular case - judge what he has to SAY in this particular case. I for one agree with him in this particular matter.
    14 May 2012, 10:42 AM Reply Like
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