A few weeks ago the markets didn’t look so hot.
But the S&P 500 made a new all-time intraday high on Thursday.
Dennis Gartman, author of The Gartman Letter, told CNBC that he thinks “stock prices want to go higher,” and that we’re having a “melt-up not a melt-down.” From CNBC:
“The correction happened a couple of weeks ago. You had a very severe 3.5-4% correction, went right down to a trend line, now you’re taking all of the news that I think is relatively evil for the market, expectations of tighter monetary policies, being brought closer rather than being deferred, the market has accepted that very well and here were are up 95 points on the day, I think you’re having a melt-up not a melt-down. And I think stock prices still want to go higher. The trend is up and all the smart guys I know keep trying to fade this thing. I’ve even tried to fade it at times and every time you do it’s been wrong. It keeps wanting to go higher.”
And in Thursday’s Gartman Letter, he sounded pretty bullish.
“…We see nothing that can or should de-rail the protracted global bull market,” he wrote. “…It will end when it ends and it will end when trends lines are broken; it will end when a previous rally high fails to be taken out and a previous interim low is, instead, taken out to the downside.” From Gartman:
“It will end when the last of the large number of very publicly bearish market watchers finally gives in, upends his/her bearish intuitions and turns, finally, bullish. It will end with the funds on the sidelines with large sums of cash on hand rather than investments made put all of those cash hoards to work, chasing performance. It will end in euphoria as all great bull markets end and at the moment there is nothing even modestly resembling euphoria in the markets. Rather there is disbelief in the integrity of the bull trend, with that disbelief fired by well- argued theory or theories that are intellectually brilliant, that make imminent good sense, that are readily embraced but which have been proven horribly wrong. When those theories are finally abandoned, the bull market shall end… and not a moment before.
“We remain “pleasantly” long of the equities market, the middle path of our three possible paths that one can adopt in a bull market: Aggressively bullish; pleasantly bullish or neutral.”
Watch the CNBC interview here. Gartman comes on at the 1:30 mark:
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