After two rate hikes earlier in the year, one of which caught traders by surprise, moments ago the Bank of Canada announced that it had kept its rate on hold at 1.00% as expected.
For a second, it seemed that the broad risk-off wave that started in Asia, swept Europe and pressured US futures was here to stay. And then, the signal all algos had been waiting for emerged: Gartman just flip-flopped back to bearish.
From Gartman's latest letter:
There is a reason why those calling for a crash, or even a market correction in the past decade, have been carted out feet first: central banks, and noweher was this more obvious than the shocking aftermath of Brexit. The UK’s Brexit vote (Jun-16) marked the point when the buy-the-dip trade became a self-fulfilling put, according to a new analysis by Bank of America.
Content originally published at iBankCoin.com
This was one of those cringeworthy moments in financial television history that I knew when I saw it, I could document it for future use in order to humiliate Bob Doll. While no one here is arguing with the merits of US earnings, I think we could all agree that it is patently absurd to suggest stocks cannot trade down, because earnings are so damned good.
US labor productivity rose 3.0% QoQ in Q3, the biggest rise since Q3 2014.
Great news, right?
Not so much, as the rise in productivity comes at the expense of the wages of the American worker who saw unit labor costs (wages) decline 0.2% (against expectations of a 0.2% gain) - down for 2 straight quarters for the first time since 2014.
Real compensation declined 1.1% YoY - falling for the fourth straight quarter...