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Dennis Gartman Sells As Gold Hits Feb. High, Low

Wednesday, 29 Feb 2012 | 5:48 PM ET

Gold set both a monthly high — and low — Wednesday, catching renowned commodities trader Dennis Gartman seemingly by surprise.

“This was really quite a day,” he said. “It’s one of those days when you say, ‘I don’t know what’s going on, but I’m selling some,’ because you have no choice. The next thing you know, it’s down $35.”

Gartman, who sold off some gold, pinned gold’s wild ride to a “lack of affirmation” from Federal Reserve Chairman Ben Bernanke that a third round of quantitative easing was forthcoming.

Gold A Broken Trade?
Gold plunges 5 percent and falls over $80 after traders interpreted Ben Bernanke's comments to mean there won't be additional easing any time soon. Dennis Gartman, The Gartman Letter, weighs in on why the precious metal dropped and how to play it.

“Gold needs consistently easier monetary policies to push higher,” he said on “Fast Money.”

U.S. gold futures dropped more than $91, or 5 percent, to close at $1,698.80 per ounce. Spot gold traded down almost 3 percent at $195.56.

The publisher of the widely followed Gartman Letter said that the price action in gold speaks for itself — and that more gold weakness was likely.

“When I see daily reversals, a new high and taking out the previous day’s low, I pay attention. When I see weekly reversals, I really pay attention. When you see a monthly reversal, if you don’t pay attention, you’re an idiot,” he said. “I think you have to be pay attention. I think there’s probably going to be more liquidation.”

Gartman reduced his long gold positions in euro and yen terms.

“Do I wish I had sold my entire position and gotten short? I’m not that quick,” he said. “I feel like I had a good day by mitigating losses.”

Joe Terranova of Virtus Investment Partners also saw a downward trend ahead.

“The price action tells me today a lot of folks who were long are getting out, going home tonight short both silver and both gold,” he said. “I think those are the right trades.”


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Trader disclosure: On Feb. 29, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long (AAPL); Najarian is long (INTC); Najarian is long (YHOO); Najarian is long (HPQ); Najarian is long (MSFT); Najarian is long (JOY); Najarian is long (SLV); Finerman is long (AAPL); Finerman is long (JPM); Finerman is long (HPQ); Finerman is long (NTAP); Finerman is long (GLUU); Finerman is long (IWM) Puts; Finerman is long (.SPX) Puts; Finerman is short (SPY); Finerman is short (MDY); Finerman is short (IWM);

For Karen Finerman
Finerman’s Fund is long (AAPL)

Finerman’s Fund is long (JPM)

Finerman’s Fund is long (HPQ)

Finerman’s Fund is long (MSFT)

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Gartman is long Gold vs. Euro

Gartman is long Gold vs. Japanese yen

For Doug Kass
Kass is short (FXI)

Kass is short (AXP)

Kass is short (RGC)

Kass is short (HSIC)

Kass is short (EFA)

Kass is short (IWM)

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