Time to short more of K Market Nuggets: Gold Might Get Uglier Before It Gets Better: Gartman
Monday February 18, 2013 9:02 AM
The “gold bugs” might be in a disconcerting position with support levels broken and “their margin clerks angry”, says newsletter editor Dennis Gartman of spot gold in US dollar terms. Margin clerks are not happy with long positions in gold and have their liquidation orders in hand, ”we fear this might get uglier before it gets better,” he writes.
Gartman says that when individuals such as billionaire George Soros, are net sellers of gold, then it is “wrong for us to argue with their assessment.”
“With the likes of Mr. Paulson long and showing no signs of liquidating, we are even less prone to be bullish of gold, fearful that he will eventually be forced to sell when the pressures upon his fund are more serious than they are presently,” Gartman writes in his Monday newsletter. Overall, Gartman says that the pressure upon the gold bulls shall become “egregious” this US President’s Day, if the lows made Friday be taken out in the cash, or spot, gold market.
It looks like it even more now.