"We must remember that when markets go parabolic (and they do indeed go parabolic from time to time) it is important to remember one of our oldest trading aphorisms: that the final 10% of the time frame of a bull market can, and often will, encompass 50-75% of the price movement. We may be in that environment now. Things seem to want to go "parabolic." What may seem like insanity may be nothing more than history repeating itself once again." http://www.marketwatch.com/news/sto...x?guid={CE010B5D-A052-40F7-BFA3-85E6A4A2BF6A}
Gartman explains: "Already trading at incredibly over-bought levels when it had risen from 4,000 in late '75 to 8,000 by the mid-'80s, in reality the rally had only just begun! From '83-'85, the Nikkei rose 8,000 to 18,000 ... and still the rally had only just begun! From '86-early '88, it rose from 18,000 to 28,000 ... and still the rally had only just begun, for in those last two years, the Nikkei moved from 28,000 to 40,000, with the last 7.000 points coming in the final weeks of '89!" imagine the dow running like this for the next 5-10 years.
Gartman is not predicting that U.S. stocks are on a permanent high plateau, rather the reverse: "As we have said, this will stop when it stops and not a moment before. It will stop of its own volition; it will stop suddenly; <b>it will end in tears</b>, but it can and likely shall continue to move higher nonetheless.'
There's a million way's to look at it. You can't tell till you bet, eh? Meteoric rise to some. Flat on the decade to others. Crap, the NASDAQ is still only 50% of it's 2000 highs. "Overbought"? To a trader that's always a funny word. By what measure? Sentiment? Valuations? P/E's vs. fixed ROI's? 14 day RSI? Please Mr. Gartman, to dentists and other non-pro's jargon like overbought seems so pseudo weighty but how about a definition of the term. Or over bought like 1996? or 97? Or 98? How about 1999? No 2000 that's the ticket!
What a freakin' tool this guy is. Balls call. If it breaks it broke if it doesn't break it didn't break. Of course with tears. He should post on ET.....