Last night, driving at 1:30 in the morning with my son to find a place to look at the meteor shower, I was telling him about the magical world of Dennis Gartman. I described the entire Gartman meme over at ZH, and my boy thought it was hilarious.
Now that we’re getting a hearty rally, a new opportunity may be revealing itself by way of the emerging markets fund, shown below. There’s a gap at 37.56, which also corresponds nicely with a broken supporting trendline. The closer we get to that price level, the more appealing the risk/reward ratio is.
It’s a strange world we live in that has a company like Facebook as a steady, consistent, rock-solid performer whereas International Business Machines has become the unreliable, flaky stock that likes to make huge price gaps based on earnings surprises. But that’s the truth. The big drop IBM took last October took nine months to heal (see arrows). That healing is for naught, because the moment the opening bell rings, IBM is going to be down at Greek crisis lows, and I suspect a new direction will be in force for the stock.