GO
Loading...

Gartman: Technicals & Fundamentals Bullish On 3 Stocks

Should you be trading on fundamentals right now? Many investors are grappling with that question.

Although you should never discard them entirely, it doesn't seem fundamentals are really driving this market - at least not for the moment.

Take Amazon trading at 44 times next year’s earnings; nothing fundamental supporting that valuation.

Or take the stronger dollar – generally seen as a bet on America’s recovery. It's dragging down the US stock market. Fundamentals would suggest a better economy is good for stocks, right???!

See what we mean. Fundamentals don’t seem to be making sense right now. Does that suggest technicals could make a whole lot of ‘cents’?

For insights we turned to Dennis Gartman, author of The Gartman Letter.

Gartman doesn't see any reason to choose. He tells us the best thing to do is -- both!

Huh?

"I steal from both schools," Gartman says. "I always try to understand fundamentals that may explain why the stock may go up, but then I want to see that the stock is, in fact, actually going up."

That’s where technicals come in. Trend lines can support the fundamental thesis by showing the stock is doing what you think it would.

And right now Gartman is bullish on 3 stocks with solid fundamentals that also have impressive technicals. They follow:

International Paper (IP)

John Deere (DE)

Symbol
Price
 
Change
%Change
DE
---

Weyehauser (WY)

Gartman says from a technical perspective, "I like stocks that move from the lower left to the upper right." And all three of these names seem to be doing just that. "Every new high has been higher and every low has been higher."

And fundamentally these companies "should all benefit in a growing economic circumstance," Gartman says. They make paper and farm equipment and as the economy recovers we should need more of it.


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Dec. 29th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders

For Pete Najarian:
Najarian Owns (MMR) Calls
Najarian Owns (BP) Call Spread
Najarian Owns (STX) Calls
Najarian Owns (UUP) Call Spread

For Steve Cortes:
Cortes Owns S&P 500
Cortes Owns U.S. Dollar
Cortes Is Short Godl
Cortes Owns (GD)
Cortes Owns (RTN)
Cortes Is Short (TOL)
Cortes Is Short (PHM)
Cortes Is Short Australian Dollar Futures
Cortes Is Short Mexican Peso Futures

For Steve Grasso:
Grasso Owns (APK)
Grasso Owns (AAPL)
Grasso Owns (ASTM)
Grasso Owns (BAC)
Grasso Owns (BGP)
Grasso Owns (C)
Grasso Owns (COST)
Grasso Owns (CSCO)
Grasso Owns (FAZ)
Grasso Owns (PFE)
Grasso Owns (PRST)
Grasso Owns (WMT)
Grasso Owns (V)
Stuart Frankel & Co. And Its Partners Own (AIZ)
Stuart Frankel & Co. And Its Partners Own (CUBA)
Stuart Frankel & Co. And Its Partners Own (GERN)
Stuart Frankel & Co. And Its Partners Own (GLG)
Stuart Frankel & Co. And Its Partners Own (HSPO)
Stuart Frankel & Co. And Its Partners Own (NWS.A)
Stuart Frankel & Co. And Its Partners Own (NXST)
Stuart Frankel & Co. And Its Partners Own (NYX)
Stuart Frankel & Co. And Its Partners Own (PDE)
Stuart Frankel & Co. And Its Partners Own (PRST)
Stuart Frankel & Co. And Its Partners Own (RDC)
Stuart Frankel & Co. And Its Partners Own (ROK)
Stuart Frankel & Co. And Its Partners Own (TLM)
Stuart Frankel & Co. And Its Partners Own (XRX)
Stuart Frankel & Co. And Its Partners Own (SDS)
Stuart Frankel & Co. And Its Partners Are Short (QQQQ)
Stuart Frankel & Co. And Its Partners Are ShorT (CL)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)

For Dennis Gartman
Funds Managed By Dennis Gartman Own (IP)
Funds Managed By Dennis Gartman Own (DE)
Funds Managed By Dennis Gartman Own (WY)

For Luciano Siracusano
Siracusano Is Chief Investment Strategist Of WisdomTree And Is An Investor In WisdomTree ETFs
Siracusano Owns (EES)

For Jim Ross
Ross Is Senior Managing Director Of State Street Global Advisors And Is
President Of State Street Global Advisors Funds Management, Inc.
Ross Owns (JNK)
Ross Owns (GLD)

For Edward Zabitsky
Zabitsky Is Short (HPQ)


CNBC.com with wires

Symbol
Price
 
Change
%Change
AMZN
---
DE
---
IP
---
WY
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report