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The Trillion Dollar Question

Thursday, 16 Oct 2008 | 6:18 PM ET

If there’s one single question circling Wall Street that gets a trader’s attention every time it’s this.

Will the bottom hold?

Considering the wild swings of the past several days let alone the past several weeks, it’s a challenging question at best. On Monday Oppenheimer chief market technician Carter Worth told us “the market has bottomed” and “now is probably the time to start buying.

Then, the very next day John Roque of Natixis Bleichroeder told us he thinks there’s a good chance the market will retest its lows. “Sell the rallies and don’t chase anything,” he said.

And those conflicting opinions seem to be echoed throughout the canyons of Wall Street.

Word on the Street
The Fast Money traders take a look at today's top business stories. They're joined by Dennis Gartman, founder of The Gartman Letter.

Where can an investor turn for some simple clarity in this confusing market. How about strategic investor Dennis Gartman, author of The Gartman Letter.

“Volatility is unlike anything we’ve ever seen,” says Gartman on Fast Money. “The past few weeks have been a scary period and I’ve gotten smaller in my trading.”

But to get back to question at the top of the page, Gartman suggests the bottom might well hold. “On Thursday for the first time we saw big investors buying commercial paper. The Libor spreads started to contract.”

And that’s a good thing. “My propensity after Thursday is to start increasing the size of my positions.”

Here’s how Gartman is trading.

“I ownbanks and I’m short the stock market. I’m probably going to buy more banks as well as the nat gas trusts.”

”Also, I own Cleveland Cliffs because I expect to see more infrastructure plays and I own the exchanges. I think CME and ICE will be winners because they can make everything transparent. And I think you want to own Apple .

You can find our interview with Dennis Gartman at the end of the Word on the Street segment.



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Trader disclosure: On Oct.16, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Pete Najarian Owns (AAPL), Is Short (AAPL) Calls, Owns (AAPL) Puts; Pete Najarian Owns (C) Put Spread; Pete Najarian Owns (GS) Call Spread; Pete Najarian Owns (MS), Is SHort (MS) Calls, Owns (MS) Puts; Pete Najarian Owns (YHOO) Call Spread; Pete Najarian Owns (SLB) And Is Short (SLB) Calls; Pete Najarian Owns (SCHW) And Is Short (SCHW) Calls; Finerman Owns (GS); Finerman's Firm Owns (MSFT), (DEO), (MO); Finerman's Firm Owns (DNA) Call Spreads; Finerman's Firm Is Short (USO), (IYR), (IJR), (MDY), (SPY), (IWM); Terranova Owns (AAPL), (EXM), (FCX), (FTO), (MA), (NOV), (POT), (X), (VLO);

Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (CNW), (OFC), (DLM), (DRH), (DLR), (EPR), (EXR), (FL), (SLB), (LNET), (MAC), (DBC), (DBV), (SKT), (UA), (BLV), (VV), (CLB), (GWX), (IGE), (FSMXX); Virtus Investment Partners Owns Seagate Tax Refund Rights; Virtus Investment Partners Owns Seagate Technology Tax Refund Rights; Virtus Investment Partners Owns More Than 1% Of Shares Of Incitec Pivot Ltd.; Virtus Investment Partners Owns More Than 1% Of Shares Of Essex Property Trust Inc.

GE Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"

Gartman Owns (CME), (ICE), (KBE), (CLF), (SDS)

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