Friday I published this post: “Time To Short More Oil – Dennis Gartman Went Long:”
NEW RECOMMENDATION: Amidst the carnage of the global stock markets this morning and even in light of the sustained bear market in crude oil, the narrowing of the contangos in Brent and WTI brings us to become a buyer of crude as noted at length above. We’ll buy a unit of crude oil, split between Brent and WTI, upon receipt of this commentary. We shall, for the moment, give these prices the latitude to move 3% against us, hoping that we can tighten that up when we return Monday. The Gartman Letter
Dennis Gartman has been notorious for being a “spunk receptacle” for hedge funds looking to unload a bad position. His audience is moronic high net worth financial advisors and brain-dead institutional “buy the dip” with other people’s money” pension and investment fund managers. Perhaps the only better contrarian indicator than Gartman is Jim Cramer.
When Gartman says he has to go long crude because the “term structure” mandates it, it tells me some slippery NYMEX or London trader is whispering sweet nothings in his ear to generate buy interest from the herd referenced above.
You can read the rest here: LINK
We’re on the brink of another financial collapse that will make 2008’s collapse look like nothing more than a boring warm-up band. Oil will likely eventually see the $20’s. This blow some big holes in big bank balance sheets and devastate the junk bond market. Both of those events will ignite the underlying derivatives napalm…