For those of us who have garnered a respectful disdain for Dennis Gartman over the past months as he flip flops positions in and out of our favor, we can feel good that he has once again flipped from his very bullish dollar position just a mere few weeks ago when he recommended to his flock to sell all their gold stocks to a very, very bearish dollar position today.

Gartman, is arguably the most respected of all newsletter writers. I believe his daily babble costs somewhere in the neighborhood of $500.00 per month and is widely read by fund managers and professionals in the investment community. He's made some great calls on gold, base metals, soft commodities and oil in the past and his track record is quite good.

So with that in mind I was quite distraught as I read when he took a bullish dollar position in April. It didn't make a lot of sense to me though so I stuck with my bullish commodities, bearish dollar position and assumed he got this one wrong. After all, at some point all the great prize fighters go down. First they lose a few rounds and then a few fights and then they're talking babble with drool running down their faces.

In any event, like all great prize fighters, he hasn't admitted a miscalculation. He seems to have forgotten most of what he wrote on April 25th, where he suggested that the US dollar's decline was finished, that commodities were done and that the tide had turned. He now suggests that he accurately called the dollars rally, that this was merely a necessary correction or bear market rally for the USD and that it's once again time to buy the Euro and the Canadian dollar again. Of course, we know that the Canadian dollar is inextricably tied to the price of gold and commodities that any bullish call for the “loonie” is a bullish call for Gold. So good for Dennis to say he was wrong on the dollar play without actually admitting it.

As for our investments, the stars are once again aligning in our favor in a way that is seldom seen. Technicals on gold stocks are so oversold that the shorters have to be getting a little worried. The gold bulls are more bullish than ever and the bears are are starting to change there tune. Geopolitical tensions are increasing around the world with more unrest in the middle east. China is now under great inflationary pressure. GB is seeing growing inflation. In fact, all the world is seeing inflation jump except for the US were they don't consider gas or food prices as part of the inflation equation. And while all of these are very bullish signs, the most bullish in my book is the growing wave of M&A activity that we're seeing in the resource sector, a sign that always precedes massive bull runs in any sector.

Diabullic