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Dennis Gartman: With or Without Debt Deal, These 2 Trades Still Work

The squabbling over the debt deal remains the major issue on Wall Street with investors watching every development out of Washington.

And given just how volatile and unpredictable the situation has become strategic investor Dennis Gartman thinks the best place for most investors right now is the sidelines.

”We could get an agreement and it would send the Dow up 150 points, or we could see some further stalling and that would cause the Dow to drop 200 points.”

However, if you must put money to work, Gartman does see some opportunity in select areas – gold and the refiners. Following are his trades:

Refiners

Largely Gartman is bullish due to the growing spread between WTI and Brent . “If you’re a refiner this is the best of all possible worlds for you,” he explains. And the environment is even better for refiners in the Midwest.

”There’s crude oil coming down from Canada and also out of the Dakotas. And that crude oil stays in the Midwest, it doesn’t make its way to the Gulf. Also the products are priced off of Brent. If you must be long – that’s the place to take a look.”

Trader Steve Grasso couldn’t agree more.

”That spread (almost) allows the refiners to print money,” Grasso says. “Whenever the spread widens I’m a buyer of refiners.”

Or as a related idea – as hurricane season approaches, Grasso also suggests “shorting Valero because that has the biggest presence in the Gulf and buying the rest for supply disruption.

Gold

Gartman’s second trade is outside the stock market all together. He suggests long gold but not in US dollar terms.

“If a debt agreement comes out gold might fall but the euro would fall 3 big figures. I don’t think you get hurt and you may do quite well. The trend has clearly been in favor of gold in non-US dollar terms,” he says

Trading After the Debt Deal

And like so many other investors Dennis Gartman expects that sooner or later Congress will raise the debt ceiling. And when that happens he thinks the US dollar will go up.

What many investors don’t realize, according to Gartman, is that the dollar is already getting strong against the euro with no resolution. “If the euro weakens in the face of no resolution, I expect it weakens dramatically once we resolve our problems.”




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Trader disclosure: On July 28, 2011, 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); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Cortes is short Copper; Cortes is short (LULU); Cortes is short (LVS); Cortes is short (IYT); Cortes is short the Euro; Cortes owns US Treasuries; Cortes owns (PM); Steve Grasso owns (AKS); Steve Grasso owns (AMD); Steve Grasso owns (ASTM); Steve Grasso owns (BA); Steve Grasso owns (BAC); Steve Grasso owns (C); Steve Grasso owns (D); Steve Grasso owns (JPM); Steve Grasso owns (LIT); Steve Grasso owns (LPX); Steve Grasso owns (MAR); Steve Grasso owns (MHY); Steve Grasso owns (NDAQ); Steve Grasso owns (PFE); Steve Grasso owns (PRST); Steve Grasso owns (XHB); Steve Grasso owns (XLB); Steve Grasso owns (XLI)

Patty Edwards
Edwards Owns (AMZN) For Clients
Edwards Owns (AAPL) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (DD) For Clients
Edwards Owns (POT) For Clients
Edwards Owns (SBUX) For Clients
Edwards Owns (PM) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (PGM) For Clients
Edwards is owns (PM)
Edwards is owns (XLK)
Edwards is owns the Canadian Dollar

Steve Grasso
Stuart Frankel & Co and it’s partners own (AAPL)
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MU)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (UAL)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (QQQQ)

For Richard Dugas
**No Disclosures

For Dennis Gartman
Funds Managed By Dennis Gartman own (LNG)
Funds Managed By Dennis Gartman own (FAX)
Funds Managed By Dennis Gartman own (MCP)
Funds Managed By Dennis Gartman own (PGH)
Funds Managed By Dennis Gartman are short S&P futures
Funds Managed By Dennis Gartman own Gold
Funds Managed By Dennis Gartman own the Australian Dollar
Funds Managed By Dennis Gartman own the Canadian Dollar
Funds Managed By Dennis Gartman are short the Sterling
Funds Managed By Dennis Gartman are short the British Pound
Funds Managed By Dennis Gartman are short the Yen
Dennis Gartman owns Brent
Dennis Gartman is short (WTI)
Dennis Gartman owns (LNG)
Dennis Gartman owns (CF)
Dennis Gartman owns Gold
Dennis Gartman owns the Swiss franc
Dennis Gartman owns the Australian Dollar
Dennis Gartman is short the Euro
Dennis Gartman owns British Pound Sterling



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