Two weeks ago, in our latest warning to shorts just after Gartman decided to short the market by going long the VIX (just ahead of its Yellen-inspired clobbering) we said we have "bad news for the bear: Gartman will be long the VIX until the S&P hits 2,118." This is what the regular CNBC Fast Money guest said:
Yesterday morning, after reading the latest Gartman letter, we reported that in what may have been the worst possible news for vol longs, Gartman said he had become a "buyer of the VIX." As a reminder this is what he said:
One would think that as we approach the most important event of the week, and perhaps the month, namely the latest FOMC announcement due in just over three hours and one which is expected to confirm that rate hikes are back on the table, something which a few months ago unleashed another round of teeth crushing volatility, that the VIX would be higher.
Not only is it not higher, but instead as the chart below shows, the VIX has just tumbled by 6%, to fresh 2016 low, and a level not seen since mid-December.
Submitted by Lance Roberts via RealInvestmentAdvice.com,
“The Bear Market Is Dead, Long Live The Bull.”
You could almost hear the chants from the always bullish biased media this week as the markets ripped higher on “first day of the month” portfolio rebalancing and short-covering by fund managers.
The rally, as discussed this past weekend, was not unexpected:
With 5 of their Top 6 trades for 2016 already stopped out, and their recent heavy losses from swing-trading Gold, one might question the demand for an ETF that tracks Goldman Sachs' hedge fund research tips, but, as Bloomberg reports, David Kostin's "Hedge Fund Trend Monitor" report - tracking the 50 companies that matter most to hedge funds - is about to be launched.