Following the weakness in global PMIs, and yesterday's Chicago PMI collapse, US Markit Manufacturing PMI dropped to cycle lows at 51.3 from 52.5 (very slightly better than expectations of 51.2) with job growth at 5-month lows, production at slowest in 28 months, and work backlogs tumbling to the lowest since Sept 2009.
This past Friday morning, when the tremendous bear market rally finally fizzled after an initial spike higher following by gradual daylong selling which closed the market in the red, following by another red close on Monday, we warned the bulls early that the "Rally is in Jeopardy" for one simple reason: Gartman had covered his shorts.
As a reminder, this is what he the perennial CNBC guest said early on Friday morning:
With markets happy to put February in the history books because it marked the fourth consecutive monthly decline in global stocks, we move on to March 1st, which doubles down as 'Super Tuesday' in the US when Trump's presidential candidacy will almost certainly be sealed and a day in which stocks decided to join the super fun by super surging overnight on nothing but bad global macro and economic which however was promptly ignored and instead the focus was on ongoing central bank intervention and even more jawboning.
Submitted by Mike Holly via The Mises Institute,
Although the causes of economic crises recurring throughout US history and often spreading worldwide can’t be proven using empirical means, oppressive government regulations favoring special interests in relevant industries have preceded every crisis.