With the Dow set to open above 20,000, here are some words of encouragement from Dennis Gartman:
THE US STOCK MARKET BREAKS OUT TO THE UPSIDE: Risk does indeed happen fast but for now the risk is that stocks may move away to the upside! Those who are short shall panic; those not long shall have to become so… swiftly.
STOCK PRICES, GLOBALLY, HAVE LEAPED HIGHER. and although we may find that difficult to believe and although we may be coming into today’s trading activity in our retirement account having had a net market neutral position, with the market breaking out to the upside and through the resistance so obvious on the chart at the bottom left of p.1 we have no choice but to skew our positions positively.
As we have said countless times before here and as we are saying here once again, this remains a long term bull market and in long term bull markets one can have only one of three positions: Aggressively long; pleasantly long and finally neutral. We have been neutral for the past several weeks; it is time once again to be “pleasantly” long and so we shall be.... For the year-to-date, stocks internationally are +2.3% while the S&P is up 1.8%. In our retirement funds here we are up 2.7% for the year and went home long of the shares of a foreign steel producer, hedged with derivatives positions sufficient to render our market exposure to one of complete neutrality. We are long too, of course, of gold in EUR and Yen denominated terms and we are long of cotton. Today we shall be covering in some of our derivatives positions while we add to our steel position to “skew” our net position to “pleasantly” long of the market.
And now bring on the Dow 20,000 hats.