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‘Ridiculously Bearish for Miners’: Gartman

Thursday, 9 May 2013 | 6:11 PM ET
'Ridiculously Bearish for Miners': Dennis Gartman
Thursday, 9 May 2013 | 5:30 PM ET
The move in the U.S. dollar bodes poorly for gold and worse for mining companies, Dennis Gartman of The Gartman Letter says.

The move in the U.S. dollar bodes poorly for gold and worse for mining companies, Dennis Gartman of The Gartman Letter said Thursday on CNBC.

"It broke out against every currency out there, even the Aussie, so this is a dollar move, and a dollar move to this sort of strength cannot be construed as being anything other than bearish for the metals and ridiculously bearish for the miners," he said.

The U.S. dollar surpassed the key 100 yen-level for the first time in four years on stronger U.S. data but also amid speculation about a report on Japanese capital flows.

(Read More: Dollar Hits the Yen Century Mark for First Time in Four Years)

On "Fast Money," Gartman said that the dollar's move higher would be bearish for gold, copper and miners.

"In an environment such as this, the miners have always – especially the gold miners – have underperformed gold," he added. "They may even do worse going forward."

Gartman also said that he would sell the long bond following that market's tumble.

"I'm going to continue to buy the note after today's performance," he added. "I thought that was a very poor performance."

(Read More: Dennis Gartman Says a Bear Market in Bonds Has Begun)

Trader disclosure: On May 9, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Brian Kelly is long TREASURIES; Brian Kelly is long COPPER; Brian Kelly is long US DOLLAR; Brian Kelly is short YEN; Brian Kelly is short GOLD; Brian Kelly is short SILVER; Brian Kelly is short DAX; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is long FL; Karen Finerman is long FINL; Karen Finerman is short SPY; Karen Finerman is short MDY PUTS; Dan Nathan is long CSCO MAY 21 STRADDLE; Dan Nathan is long BBRY JUNE/JULY 14 PUT SPREAD; Dan Nathan is short XHB ; Dan Nathan is long JNJ MAY 85 PUTS; Dan Nathan is long SPY MAY 10TH WEEKLY 162.5 PUTS.

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GOLD
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