gartman-oil

From here:
Futures trading activity in oil is also pointing to dangers for the commodity, said Dennis Gartman, the editor of the Gartman Letter LC. The futures price of oil has been trading at less than the spot price - a condition known as "backwardation" - but the difference has narrowed during the past few weeks as the futures price moves close to the spot price, he said. Backwardation is a measure of the premium a buyer is willing to pay for immediate delivery of a commodity.

In a real good bull market predicated on demand, futures go to increased backwardation almost daily, especially at new highs, Mr. Gartman said in an interview on Friday. "The market is saying: 'We won't pay you to store it. We will willingly pay up for the privilege of storing it.' "
When backwardation at new highs narrows, it indicates that the moneyed interests or those that need inventory such as informed commercial users are deferring their demand, he said.

"This is not how a bull market is supposed to react, and unless there is something wholly beyond our ken taking place out there, this is a signal that all is not well with the bull market and that when it breaks, it shall break swiftly, violently and materially," Mr. Gartman said in a report to clients