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Dennis Gartman: Market Getting Inured to Middle East

Dennis Gartman on Wednesday said if news out of the Middle East doesn't get any worse than it has been and he doesn't think it will, the market will quickly become inured to the unrest.

Markets have been on edge over the events in the Middle East, but Gartman said it isn't so much about oil as it is about political uncertainty. The situation there can get out of hand quickly and while Gartman doesn't think it will, he said investors should be concerned about the possibility.

Gartman the uncertainty can go on for a long time before it will hurt the equity market, though. It would take a sizable news event for it to move the markets, he guessed.

Gartman doesn't think the bull is derailed yet, but if he had to guess, he'd say the Middle East would be the thing to do it.

"If there's one thing that could rally go bad, that's the thing that could go bad," Gartman said. "Do I think that we're going to have hyperinflation? Absolutely not. Do I think there will be deflation in wage rates? Maybe so."

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A currency and commodities trader with more than 30 years of experience, Gartman is also a "Fast Money" contributor and publisher of the widely read "The Gartman Letter."

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POPS & DROPS

In midday trading, stocks struggled for direction as oil prices steadied on the second anniversary since the S&P 500 hit its lows. The "Fast Money" traders were watching these market movers in particular.

Pops (stocks that went higher)

IBM (IBM) popped 3%: Following its analyst meeting, the technology giant received several target increases from Bank of America, Deutsche Bank and Bank of Montreal prior to Wednesday's open. Options trader JJ Kinahan called it a "lovefest," where many analysts raised their estimates from $180 to $200 a share.

Tyson Foods (TSN) popped 3%: The largest U.S. chicken processor was upgraded to ‘buy’ from ‘hold’ at Deutsche Bank and was added to its ‘short-term buy list.' Brian Kelly, founder of Kanundrum Capital, said the company is benefiting from an upswing in the chicken cycle.

American Eagle (AEO) popped 5.5%: The teen retailer topped fourth-quarter earnings-per-share by 1 cent. It also reported its CEO is leaving, which Patty Edwards of Trutina Financial said opens the door for a possible takeout.

Drops (stocks that went lower)

Boston Beer (SAM) dropped 4.5%: The maker of Sam Adams Lager reported its 2011 profits will be as low as $3.45 cents a share, compared to a prior forecast of $3.95. Veracruz founder Steve Cortes thinks its chart looks like a double-top. He recommends taking profits. (Watch: Boston Beer founder Jim Koch on CNBC)

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CALL THE CLOSE

Before the close of the "Halftime Report," the "Fast Money" traders guessed where they think the market could go, and how they plan to trade it.

With the CBOE Volatility Index pushing higher, Kinahan is a seller of the market.

"I think you've got to be cautious at this point," Edwards added.

Kelly is also a seller of the market.

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Trader disclosure: On Mar. 9, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Steve Cortes is short (C). Steve Cortes is short (MOS). Steve Cortes is short Wheat. Steve Cortes is short Corn. Steve Cortes is long (SDY) vs. S&P short. Steve Cortes owns (EXC). Steve Cortes owns (CAG). Steve Cortes owns (K). Steve Cortes owns the U.S. Dollar. Steve Cortes owns U.K. Bonds. JJ Kinahan owns (SPY) options. JJ Kinahan is short (NFLX) options. JJ Kinahan owns (INTC) options. JJ Kinahan owns (F) and (F) options. JJ Kinahan owns (CSCO). JJ Kinahan owns (MSFT) options. JJ Kinahan owns (GE) and (GE) options. JJ Kinahan owns (MOS) and (MOS) options. JJ Kinahan owns (C) and (C) options.

Comcast Is The Parent Company Of CNBC
Comcast Is The Parent Company Of NBCUniversal
GE Owns 49% Of NBCUniversal
GE Owns 49% Of CNBC

BRIAN KELLY
Accounts Managed By Kanundrum Capital Are Long Oil
Accounts Managed By Kanundrum Capital Are Long Gold
Accounts Managed By Kanundrum Capital Are Long Silver
Accounts Managed By Kanundrum Capital Are Long Sugar
Accounts Managed By Kanundrum Capital Are Long U.S. Bonds
Accounts Managed By Kanundrum Capital Are Long The Canadian Dollar
Accounts Managed By Kanundrum Capital Own (FRO)
Accounts Managed By Kanundrum Capital Own (EBAY)
Accounts Managed By Kanundrum Capital Own (RTN)
Accounts Managed By Kanundrum Capital Own (TLT)
Accounts Managed By Kanundrum Capital Own (SGG)
Accounts Managed By Kanundrum Capital Are Short S&P Futures
Accounts Managed By Kanundrum Capital Are Short the U.S. Dollar
Accounts Managed By Kanundrum Capital Are Short (XRT)
Accounts Managed By Kanundrum Capital Are Short (XLF)
Accounts Managed By Kanundrum Capital Are Short (IXG)

PATTY EDWARDS
Edwards owns (SPY) for clients
Edwards owns (XLB) for clients
Edwards owns (GLD) for clients
Edwards owns (SLV) for clients
Edwards owns (AMZN) for clients
Edwards owns (V) for clients
Edwards owns (JNJ) for clients
Edwards owns (AAPL) for clients
Edwards owns (IBM) for clients
Edwards owns (MSFT) for clients
Edwards owns (QCOM) for clients
Edwards owns (GE) for clients
Edwards owns (TGT) for clients
Edwards owns (CME) for clients
Edwards owns (POT) for clients
Edwards owns (FXI) for clients

DENNIS GARTMAN
Funds Managed by Dennis Gartman are long the Canadian Dollar
Funds Managed by Dennis Gartman are long the Australian Dollar
Funds Managed by Dennis Gartman are long the Swiss Franc
Funds Managed by Dennis Gartman are long Gold
Funds Managed by Dennis Gartman are long Corn
Funds Managed by Dennis Gartman are long Soybeans
Funds Managed by Dennis Gartman are long Sugar
Funds Managed by Dennis Gartman are long Crude
Funds Managed by Dennis Gartman are long Nat Gas
Funds Managed by Dennis Gartman are short the Euro
Funds Managed by Dennis Gartman are short the British Pound Sterling
Funds Managed by Dennis Gartman are short The Yen

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