Gartman: I'm Flat And I'm Nervous

If you’re trading this market, you’d better have a strong constitution. The action is harder on your stomach than the first drop of Coney Island’s Cyclone.

For the second time this week the Dow plunged by triple digits as worried investors grappled with speculation about which company “might be next” due to seriously tight credit conditions.

What does tomorrow bring? Will it start spilling over into consumers? Will there be runs on the banks? There’s a million questions. Fortunately we have Dennis Gartman, author of the Gartman Letter to provide guidance.

How do you trade the turmoil?

"I’m flat and I’m nervous,” says Gartman. “The only trade I have on of any consequence is this. I’ve been long of McDonald’s and short of the stock market itself . And I’ve been long some banks and short the stock market itself. But in the last two minutes of the day I got a little less short. However, these are trades for professionals, for the public I recommend being rather small.”

What do you think about the AIG bailout?

"It makes me more comfortable with the state of the American financial system and I’m amused that everyone is calling it a bailout. I’m sorry but AIG is borrowing money at close to 12%. You can borrow money from Nick the Knife for less that that!”

How about a month from now?

“I think we’ll look back and say what were we thinking?” replies Gartman. “I’ve never been a fan of Wachovia , but I think we’ll look back and say single digit prices were very silly prices.”

What’s the bottom line?

”These are the most consequential days I’ve ever seen,” Gartman concludes. October of ’87 was just one or two days. This is two weeks and it’s not just us. This time it's the world.”

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Trader disclosure: On Sept 17, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (WMT), (MSFT); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (AAPL) And (AAPL) Collar; Najarian Owns (MS) And (MS) Collar; Najarian Owns (TSO) Call Spread; Najarian Owns (WB) Put Spread; Najarian Owns (XLF) And (XLF) Collar; Finerman Owns Owns (GS), (JNJ), (MSFT), (SUN), (TSO); Finerman's Firm Is Short (XLF), (IYR), (IJR), (MDY), (IWM), (SPY), (BBT), (COF)

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