Gartman Looks to Fed for 10-Year, Gold Positions
"I don't think the Fed's going to do much — I don't think they can do much, nor should they do much — ahead of the election, but what's really more important to me is the fact that over the course of the last year, the adjusted monetary base, which is the real footprint to the Fed's asset base, has actually been declining," he said on "Fast Money."
"It appears to me that the Fed is allowing old securities to mature and roll off. It's replacing them a bit, but not at the pace that they're maturing."
Gartman said that his faith in gold had been reduced.
"My belief in bullion eroded rather dramatically about three weeks ago. I'm down to what I call a core position," he said.
"I'm being attacked on a rather consistent basis by the gold bugs, who think gold can only go one way, that's up," he added. "At this point, it appears that they are the ones who under some pressure, and if we continue to see the crude oil market weaken, you're going to see 1,700 taken out on the downside. I know that the gold bugs will applaud the fact that I make that statement because they'll cheer and say that means the bottom is in, but that's not true."
Gartman, editor of The Gartman Letter, also he was short "a small amount" of 10-year U.S. Treasuries.
"The operative words here are 'a little bit.' I won't let this go against me by more than 1 percent, and thus far, I'm breaking dead-solid even on the trade," he said.
Written by Bruno J. Navarro, CNBC.com Producer.
Trader disclosure: On Oct. 24, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Weiss is long BAC; Steve Weiss is long QCOM; Steve Weiss is long C; Mike Murphy is long AAPL PUTS; Mike Murphy is long WFC; Mike Murphy is long TGT; Mike Murphy is short FB PUTS; Joe Terranova is long VRTS; Joe Terranova is long SBUX; Joe Terranova is long SWN; Joe Terranova is long TRV; Joe Terranova is long VZ; Joe Terranova is long XOM; Joe Terranova is long CVX; Joe Terranova is long GS; Joe Terranova is long GLW;
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