Dennis Gartman: Durable Goods Number Alters Commodities Trade

If you’re a trader, you might want to rethink the way you’re playing commodities.

There are a few bearish catalysts threatening the sector:

First, Goldman Sachs downgraded its short term outlook on the sector from overweight to neutral. Essentially the firm says commodities have settled into the spring doldrums and to support the call, points to historically low volatility despite tensions in Iran and concerns over China.

Also, strategic investor Dennis Gartman tells us the latest durable goods data calls the commodities trade into question.

New orders for long-lasting U.S. factory goods increased only modestly in February, supporting the view that economic growth in the first quarter could be lackluster.

“The durable goods changed everyone’s psychology – I threw a lot out of my positions because of the violent turn,” Gartman reveals.

“The fact that inventories built to a 26 month high – the Street said wait – inventories are that long – buying has to be halted in the near term – that was the turning point.”

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Trader disclosure: On Mar 28, 2012, 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 is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Tim Seymour is long FCX; Pete Najarian is long AAPL CALLS; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long MS CALLS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long SBUX; Pete Najarian is long COP; Pete Najarian is long PEP; Pete Najarian is long HPQ; Pete Najarian is long SCCO

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