Oil prices edged higher Wednesday but steadied after failing to top $120 dollars a barrel, as traders digested a mixed report on US stockpiles and growing concerns over soaring energy costs. Is this the end of the trend?
Strategic investor Dennis Gartman, author of the Gartman Letter joins the panel for this conversation. Following is a summary of his main points.
What’s next for crude oil?
It’s been a long run to the upside, replies Gartman. But now crude looks "sporty" to me. I wouldn’t be surprised if we took as much as $10 dollars out of it over the course of the next 2 weeks.
However, even if crude oil were to break I still like the Oil Services HLDRS . In fact, you might want to short crude and go long the service stocks.
What’s your view on gold?
I see a gold market that’s not going to make new highs, replies Gartman. All of a sudden at $950 gold failed and couldn’t rally. Everything was in its favor but it couldn’t go up. I wouldn’t be surprised to see it go down another $40 from here.