GO
Loading...

Dennis Gartman: Don’t Overlook Plunge in This Metal

Wednesday, 22 Aug 2012 | 1:12 PM ET

If you’re trading industrials and natural resource stocks, strategic investor Dennis Gartman tells us you better have an eye on what’s happening in this metal.

Iron ore has plunged 18% in 6 months,” says Gartman. “And it’s telling me that it’s time to look at steel companies because iron ore is the major component needed to make steel. In other words, a major input cost has become awfully cheap.”

Iron Ore Plunges 18 Percent in Six Months
Dennis Gartman, The Gartman Letter, says iron ore and copper will tell you a lot about the global economy -- particularly the Chinese economy.

Although Gartman's thesis should bode well for all steel makers he's particularly bullish on US Steel – not only because of this positive fundamental development but also because of the technical action.

“The stock refuses to make new lows and that I find interesting,” he says. “Not only hasn’t it made new lows but it’s starting to move higher.”

That according to Gartman is a buy sign.

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 August 22, 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 SBUX; Joe Terranova is long VRTS; Joe Terranova is long WFM; Joe Terranova is long AAPL; Joe Terranova is long CSTR; Joe Terranova is long CHKP; Joe Terranova is long EMC; Joe Terranova is long NXPI; Steve Weiss is short: AAPL PUTS; Steve Grasso is long AET; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU

For Steve Milunovich
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: DELL
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: HPQ


CNBC.com with wires.

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.