GO
Loading...

Dennis Gartman Buying Gold and Stocks

Can gold and stocks rally at the same time? Not only does Dennis Gartman think they can, he’s betting they will.

The famed commodities investor, author of The Gartman Letter, and CNBC Contributortells us investor sentiment is far too bearish in both stocks and the precious metal.

Looking at stocks, he points to the ratio of puts to calls on the CBOE, which he says is near parody; when the ratio is usually closer to 2.5 to 1.

Also he says volume spiked in his Risk Off ETF . “Normally OFF has about the same volume as ONN,” he says. “But last week OFF traded 100,000 shares while ON traded 1,000 shares. That ratio is unbelievable.”

And as for gold, “It’s been taken down, beaten up, very hard. Gold made a new low but then closed higher on the day,” he says.

All told, “The public is massively bearish and that tells me it’s time to be bullish,” he says.

“Most people don’t think gold and stocks can go higher together, but I expect to see them trade dramatically higher over the course of the next several months,” he says. “The trend is now higher.”

* You can find our conversation with Gartman about 5 minutes into the video clip above.

Posted by CNBC's Lee Brodie






______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On May 21, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM; Karen Finerman is long HPQ; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Brian Kelly is long WFC; Brian Kelly is long GLD; Brian Kelly is long INTC; Brian Kelly is long T; Brian Kelly is long VZ; Brian Kelly is long LO; Brian Kelly is short EUROSTOX 50; Brian Kelly is short CAE 40; Stephen Grasso is long ASTM; Stephen Grasso is long BA; Stephen Grasso is long D; Stephen Grasso is long FRO; Stephen Grasso is long LNG; Stephen Grasso is long MHY; Stephen Grasso is long MO; Stephen Grasso is long PFE; Stephen Grasso is long S; Stephen Grasso is long XLU; Stephen Grasso is long ZAZA

For Steve Grasso
Stuart Frankel has LONG positions in RDC
Stuart Frankel has LONG positions in CUBA
Stuart Frankel has LONG positions in GERN
Stuart Frankel has LONG positions in HPQ
Stuart Frankel has LONG positions in HSPO
Stuart Frankel has LONG positions in MU
Stuart Frankel has LONG positions in NYX
Stuart Frankel has LONG positions in P
Stuart Frankel has LONG positions in PRST
Stuart Frankel has LONG positions in XRX
Stuart Frankel has LONG positions in ZNGA
Stuart Frankel has LONG positions in APC
Stuart Frankel has LONG positions in BAX
Stuart Frankel has LONG positions in CVH
Stuart Frankel has LONG positions in DVN
Stuart Frankel has LONG positions in ESV
Stuart Frankel has LONG positions in GM
Stuart Frankel has LONG positions in TBT
Stuart Frankel has LONG positions in UAL
Stuart Frankel has LONG positions in WSH
Stuart Frankel has LONG positions in UNM

For Scott Nations
Scott Nations is long SPY
Scott Nations is long BAC
Scott Nations is long C
Scott Nations is long JPM

For Herman Leung
No part of our respective compensation was, is, or will be, directly or indirectly, related to the specific recommendations or view expressed in this research report.

For Toni Sacconghi
Bernstein currently makes a market in the following companies DELL

CNBC.com with wires.

Symbol
Price
 
Change
%Change
S&P 500
---
OFF
---
UBS E-TRACS FG RON
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report