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Dennis Gartman: Irrational Selling Driving Commodities Lower

Looking at the sell-off in gold , copper and other commodities, strategic investor Dennis Gartman says, it feels like the market is growing irrational.

As oil slipped below $90, Gartman told us that a week ago he’d would have been hard pressed to think there was more downside.

But no more.

“The markets are growing irrational and, like Keynes said, the market can remain irrational much longer than you or I can remain solvent.”

Gartman believes commodity investors are now in liquidation phase. “Rationality and reason are now leaving the markets. To see gold tumbling $60-$70 in 48 hours, to see stocks tumbling– it’s a global rush to liquidity,” as investors cash out of their positions fearing the very worst.

And those fears have everything to do with Greece and the growing belief that it’s only a matter of time before Athens leaves the European Union.

Not only could an exit throw all of Europe’s economies into turmoil but the fear has sent investors into the US dollar.

Both are bearish for commodities.

And Gartman suggests the fears are well founded.

“Germans have been painted into a difficult corner and the Greeks have been painted into a difficult corner,” says Gartman. “We could be in a world of hurt.”

On a related note, Gartman tells us, until matters in Greece show at least some signs of resolution, he’s no longer bullish gold or stocks – a trade he told us about on Monday.

Posted by CNBC's Lee Brodie

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Trader disclosure: On May 23, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long SBUX; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long LQD; Joe Terranova is long AAPL; Joe Terranova is long CNX; Joe Terranova is short JUNE MINI S&P FUTURES; Steve Cortes is long DEO; Steve Cortes is long CLX; Steve Cortes is long GOOG; Steve Cortes is short XHB; Steve Cortes is short COH; Steve Cortes is short JWN; Steve Cortes is short EURO CURRENCY

For Dennis Gartman
Dennis Gartman is long GOLD in DOLLAR TERMS

Michael Widner
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