Just to show you how incompetent guys like Gartman are, and Gartman represents the views held by 70% of professional and institutional money managers, these Gartman types finally stopped the massive selling that they've done since last December and finally started to buy on balance over the last two days. Since the Ides of March most of the upside has been driven solely by short covering. The doubt has been THAT high, but you didn't hear a word about that kind of sentiment from anyone on CNBC.
Do you notice all these idiots talking about "excess liquidity"? The humorous thing, as usual, and just when you see Gartman capitulating, "liquidity" is rapidly falling. Since these idiots don't know what they're talking about when they use the word, "liquidity", I will fill in the void.
Money is rapidly becoming unavailable because so much of it is being used to take advantage of what is finally being admitted, strong economy. First, the money gets encumbered, and then short rates start rising to reflect relentless demand that comes from great expectations bred by economic strength. They rise unless FED makes up the gap. It is very difficult to exactly quantify these forces, and that's why they go unnoticed by most, but one can look to the revival of FED's Permanent creation in early April as an attempt to hide the widening gap. It's only an attempt though because "illiquidity" is rising anyway.
Did you know that no one on the NY Fed trading desk knows anything about what I'm saying? They're just reacting to a market state and they think it's temporary. |
