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Dennis Gartman: Reversal of Consequence Upon Us

Global growth trades that had worked for several weeks, sure didn’t on Wednesday. In fact, bears slammed global growth trades with almost reckless abandon.

For example, both oil and copper retreated on Wednesday; and on top of that Wall Street favorite Freeport McMoRan traded sharply lower ahead of its earnings report Thursday.

Strategic investor Dennis Gartman, author of The Gartman Letter, calls the price action ugly. ”This was one of the worst days I’ve seen in quite a long time,” he said in a live interview on CNBC’s Fast Money.

And he’s among the growing chorus that believes the sell-off may be a sign that momentum is shifting.

”One gets the sense after a very sustained run in commodities it’s time for a correction,” he says. “We saw a lot of outside reversals in various areas."

For example corn made a new high on Wednesday but then closed lower on the day.

That outside reversal in corn is just one catalyst that leads Gartman to tell us, "I get a sense that a reversal of some consequence is upon us.”

CLANGING BELLS

The traders often say they don’t ring a bell at the top but this time may be an exception. Dennis Gartman thinks that Cargill is clanging the bell rather loudly.

As you may know, Cargill announced plans to sell its 64% stake in fertilizer company Mosaic. That’s 286 million shares worth some $24 billion.

The move effectively puts Mosaic up for sale, and despite comments by the company that would suggest otherwise, it’s a move Gartman as well as other market pros don’t think would have happened, had Cargill anticipated a lot more upside.

Fast trader Joe Terranova is also concerned and growing cautious. In a conversation about tech stocks and the market broadly he says, "if the market continues in this fashion reversing to the downside" we may be at an inflection point. "It looks like downside momentum is developing."

Speaking about his position in Mosaic, Gartman tells us, "I've got to sit down and think about what I want to do. I needed a correction and so does the market. We'll see what happens."



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Trader disclosure: On Jan. 19, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour owns (AA), (BAC), (F), (FXI) and (MPEL). Guy Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE) and (BTU). Finerman owns (AAPL), (BAC), (BP), (HPQ), (GOOG), (C), (MSFT), and (WFC) preferred. Joe Terranova Owns (GLD) Puts. Joe Terranova Owns (PCX) Puts. Terranova Owns (ACI) Puts. Joe Terranova Owns (TBT) Puts. Joe Terranova Owns (UPL), (VRTS), (PVH), (GM), (CVI), (CNQ), (LTD), (C), (PEP) and (CPX). Joe Terranova Is Short (JOYG).

GE is the parent company of CNBC

TIM SEYMOUR
Seymour's firm is short (BHP)

GUY ADAMI
Adami's wife works for (MRK)

KAREN FINERMAN
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman's firm is short (IJR)
Finerman's firm is long S&P puts
Finerman's firm is long Russell 2000 puts
Finerman's firm owns (BBY)
Finerman's firm owns (BP)
Finerman's firm owns (HPQ)
Finerman's firm owns (IBM)
Finerman owns (JPM) and (JPM) leaps
Finerman's firm owns (JPM) and (JPM) leaps
Finerman's firm owns (MCD)
Finerman's firm owns (MSFT)
Finerman's firm owns (WMT)

JOE TERRANOVA
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (IPI)
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Own (QCOM)
Accounts Managed By Kanundrum Capital Own (MS)
Accounts Managed By Kanundrum Capital Own (RKH)
Accounts Managed By Kanundrum Capital Are Long The Euro
Accounts Managed By Kanundrum Capital Are Long (XLE)
Accounts Managed By Kanundrum Capital Are Short The Yen

CARTER WORTH
Worth has no disclosures

STEVE CORTES
Cortes has no disclosures

VINCENT ANDREWS
Within the last 12 months, Morgan Stanley has received compensation for investment banking services from (MOS)
In the next 3 months, Morgan Stanley expects to receive or intends to seek compensation for investment banking services from (MOS)
Within the last 12 months, Morgan Stanley has received compensation for non-investment banking services from (MOS)
Withing the last 12 months, Morgan Stanley has provided investment banking services or has an investment banking client relationship with (MOS)
Morgan Stanley & Co. Inc is a market maker in (MOS)

DANIEL CLIFTON
Clifton has no disclosures

MIKE KHOUW
Cantor Fitzgerald & Co. have no disclosures on XLE

PETE NAJARIAN
Pete Najarian has no disclosures

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