As regular readers know, when it comes to my own work, the problem is not performing the analysis. The problem is the lack of anything to analyze -- in the Wonderland Matrix.

The problem is that in the real world, there is this thing called (economic) "fundamentals". You perform analysis by connecting-the-dots (correctly) with respect to those fundamentals. However, the Wonderland Matrix is a fantasy-world, and in this fantasy-world fundamentals don't count -- indeed they are rarely even mentioned.

What we get instead is endless, so-called "price analysis". The problem is that price is not a fundamental of any market. Thus price analysis is (at best) a derivative of legitimate, fundamentals-based analysis.

As a derivative of fundamentals-based analysis, the only way that price analysis has any validity at all is in rational, legitimate, non-corrupt markets. Because it is only in such markets where "price" actually means anything. We have the opposite of this, we have totally corrupt, totally rigged markets.

In rigged markets, price is the product of crime. It is an arbitrary number, and attempting to analyze an arbitrary number is a facile activity. Case in point is perpetual market-pumper, perennial gold-bear, and supposed "expert", Dennis Gartman. In his endless pumping of (mostly) U.S. markets, almost all we ever get is price analysis:

"Look how high the price has already gone. Look how much higher I think the price is going to go."

That's not "analysis". That is cheerleading. It's also not how to make money in markets. Buy high, and try to sell higher.

What have we seen in recent months? U.S. markets had gotten so obviously over-valued, the "rally" had gotten so over-extended and rancid with time, that perma-bull Gartman did something he rarely does: flip-flopped from Bull to Bear. He began to make bearish bets, because these pseudo-analysts don't invest, they only gamble. But Gartman's bearish bets weren't paying off.

So now Gartman is flip-flopping back to a Bull. Why? Did sober analysis indicate that the fundamentals had changed? Of course not. Gartman flip-flopped back from Bear to Bull simply because the prices were moving in the opposite direction...

The trend, despite our antipathy to it, remains upward and we have been undeniably wrong in having taken up a small bearish position via a bet on volatility rising. As is our method of trading, when we are wrong we try our best certainly not to do more of that which is not working and hence we covered part of that position in the VXX last week. We covered more immediately after the news on payrolls was released, and we shall cover more today.

He has no reason at all to flip-flop back to being a Bull. Even his own (silly) price analysis is telling him that the markets are even more overvalued than when he did his first flip-flop. He has become a "bull" again for only one reason: to chase the markets higher, when they are already at RIDICULOUS bubble levels.

Intellectually bankrupt. No convictions. Blow with the wind.

It would be unfair to single-out Dennis Gartman, because this is how virtually allof the mainstream pseudo-analysts engage in "analysis". Intellectually bankrupt. No convictions. Blow with the wind. Chase prices higher.

"Investing" is an activity based purely on fundamentals-based analysis. Buy low; sell high. But (and here is the key) the only way to KNOW whether the price of any company/market/sector is genuinely "low" is via fundamentals-based analysis.

Put another way, the only way to separate potential investment prospects between those which are "undervalued" versus those which are merely cheap (for a reason) is via fundamentals-based analysis. Conversely, the mainstream pseudo-analysts, who engage purely in what they call "price analysis" are merely gamblers. They wouldn't know how to "invest" if their lives depended on it.

Gartman "Suffers Worst Day Of The Year", Flips Flops Again: "We Have No Choice, We Have To Dance With TINA"

Shortly after Garman "warned" last Wednesday that "stocks could be in trouble", we warned traders that anyone who had put on fresh VXX longs may want to cover...