Seeking Alpha

As the S&P 500 plows back above its 200-day moving average, technical bulls once again are...

As the S&P 500 plows back above its 200-day moving average, technical bulls once again are coming out of the woodwork. But, will this rally turn into something real or just peter out? Skeptics argue Europe is still a problem and the gains aren't sustainable. Dennis Gartman agrees, saying the recent bounce is going to be short lived. "Usually bottoms are not formed in a pattern of a 'V'... Usually you get a bounce, then the market goes back and tests its lows again and again. I'd have very little exposure to equities."
Comments (23)
  • montanamark
    , contributor
    Comments (1434) | Send Message
     
    and what do the SA censors say?
    6 Jun 2012, 07:50 PM Reply Like
  • Robert Duval
    , contributor
    Comments (2945) | Send Message
     
    I say peter out, but get nervous that is that what Gartman thinks. Talk about a contrary indicator!
    6 Jun 2012, 07:54 PM Reply Like
  • sheeple2012
    , contributor
    Comments (203) | Send Message
     
    agreed if Gartman is bearish I shall want to be long of stocks... for a few more days at least
    6 Jun 2012, 07:55 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9923) | Send Message
     
    Very ST short covering rally, based on absolutely nothing but rumors of Fed & ECB interventions that are totally without substance and highly unlikely to happen anytime soon.
    6 Jun 2012, 07:57 PM Reply Like
  • Tack
    , contributor
    Comments (12770) | Send Message
     
    And, the market was absolutely convinced that QE3 was in the cards last September, after nearly a 20% pullback. It didn't happen, and markets rose 30%.

     

    The entire belief that only QE makes markets move is a myth, but one that seems to have perpetual life.
    6 Jun 2012, 08:03 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
     
    Finally someone saying it! Enough with the BS already. It is valuation.

     

    Today some ignorant on Bloomberg said "QE inflated equities and commodities having nothing to do with the real economy". What a joke. If I hear such crap I know people talking there on Bloomberg are simply uneducated.
    6 Jun 2012, 08:13 PM Reply Like
  • sr1977
    , contributor
    Comments (319) | Send Message
     
    While perhaps not a true QE, Operation Twist was introduced on September 21, 2011. Later, in December 2011 the European LTRO, (which the fed via Tim Geitner had a hand in crafting) was introduced.

     

    QE on both sides of the pond was used last fall.
    7 Jun 2012, 04:00 AM Reply Like
  • Tack
    , contributor
    Comments (12770) | Send Message
     
    sr:

     

    Not only not "true QE," not QE at all. Examine money supply charts since QE2 ended in June 2011:

     

    http://bit.ly/v9oZgl
    7 Jun 2012, 04:18 AM Reply Like
  • Stock Reversals
    , contributor
    Comments (206) | Send Message
     
    Yep, whatever Gartman says Im going other way...especially on GOLD

     

    Looking for 1326, 1344, 1361 pivots, then another 155 point plus decline in the SP 500.... the bear started at 1422
    6 Jun 2012, 08:14 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3079) | Send Message
     
    http://bit.ly/IcHn4G

     

    Weekly Chart

     

    Hardly the start of a recovery. Hope everyone has not yet forgotten Greek elections on 17 June. Should be quite the spectator event that week.
    6 Jun 2012, 08:24 PM Reply Like
  • User 502794
    , contributor
    Comments (122) | Send Message
     
    i disagree with the disbelievers...the market correction is over and new highs will be made by the end of summer. the level of bearishness got too pervasive and the market is way underowned as evidenced by the outperformance in a very bad May of the hedgefund community (in particular, the long/short funds). wall of worry is in place and gonna be climbed
    6 Jun 2012, 08:45 PM Reply Like
  • Hitesh Patel
    , contributor
    Comments (314) | Send Message
     
    Perfect set up for a short trade on the spx. short with a stop out above the 1320-1325 resistance lines
    6 Jun 2012, 09:02 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
     
    Last words ;P
    6 Jun 2012, 09:23 PM Reply Like
  • Ted Bear
    , contributor
    Comments (575) | Send Message
     
    Dennis Gartman...nice enough right wing zealot....recently disovered he is a religous koo-koo bird as well....but not so engaged when it comes to calling equity markets. Every one of his recent calls has been a reverse indicator. When the chart reads from the upper left to the lower right.......
    6 Jun 2012, 09:23 PM Reply Like
  • bigazul
    , contributor
    Comments (963) | Send Message
     
    I am a fundamental investor first; and yes, the market is cheap right now. But any of you buying on that premise alone are being stupid. The market has blasted through 10X earnings more than a couple of times, it can always go cheaper than the 13-14 that it is today.

     

    What you saw today was a textbook relief rally, a technical reaction to a very oversold condition. Don't read any more into it than that.
    6 Jun 2012, 09:33 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    Today I'd call the buying 'the Wisconsin call option'.

     

    It was a blow off sentiment reaction to the possibility that we can dump the spoiled child in DC and replace him with an adult, and along with him, hopefully an adult Congress who will actually publish a working budget unlike Harry Reid.

     

    It was the belief again that the American electorate is not a complete retard.

     

    And we can once again get some fiscal sanity back into this damn nation of lost Krugman souls.
    6 Jun 2012, 09:58 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3079) | Send Message
     
    In other words a giant head fake to those who use politics to time their investment decisions.
    6 Jun 2012, 10:04 PM Reply Like
  • moscow1941
    , contributor
    Comments (40) | Send Message
     
    Having voted for Bush twice, american electorate has already proved it is a complete retard. That ship has sailed.
    6 Jun 2012, 10:15 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
     
    More Draghi than Wisconsin.
    6 Jun 2012, 10:18 PM Reply Like
  • 867046
    , contributor
    Comments (398) | Send Message
     
    The expected world 2012 GDP growth is still around 3% and

     

    "Caterpillar's first-quarter profit (1Q2012) jumped 29 percent and it boosted its outlook for the year Wednesday with U.S. construction firms replacing old gear and global demand booming for mining equipment."

     

    Certainly CAT would have seen something negative in March.
    6 Jun 2012, 10:17 PM Reply Like
  • fastboy
    , contributor
    Comments (49) | Send Message
     
    Markets could continue its bounce to June 17th, but from there its pretty tenuous I think.
    6 Jun 2012, 10:21 PM Reply Like
  • timdmiller
    , contributor
    Comments (4) | Send Message
     
    I haven't been looking at charts for very long, but this looks like nothing more than a momentary bounce before more decline. Maybe some sideways movement before some European news pushes the fear factor button again.
    7 Jun 2012, 12:15 AM Reply Like
  • johnnyd55
    , contributor
    Comment (1) | Send Message
     
    careful, gartmen had had a string of lost calls but he is to be reckoned with. He has a had an even longer string of being right on the money-- thats why he is even a name you know..

     

    careful here-- stocks were bound to bounce for a day or two but look out below....
    7 Jun 2012, 02:34 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|