For the last 20 years, Dennis Gartman's daily musings on commodity and other markets has become required reading for every serious trader, hedge fund manager and analyst out there. Top traders including our own Eric Bolling consider Gartman to be one of the most insightful strategists in the world... and on tonight's Fast Money not only did he honor us with a visit he revealed why he's calling for a global bear market.
Dennis Gartman said the first thought in his head today was “Oops I was short! I was surprised to see so much strength. Can it continue? I don’t think so!”
He said, “The fact that all the markets all over the world broke speaks volumes.” Although most people think it was China, Gartman says it was the UN talking about a tax tied to global warming that dragged down markets. “I think tax increases at anytime are detrimental to a market. It’s a threat, but it still hurts.”
On the major markets…
The NASDAQ as an index is broken as well as the Dow and FTSE – they’re all broken: "I think it’s a global bear market.”
Strazzini said that the sell-off was dramatic on an expectation basis.
(Ratigan said that if he knew Gartman was going to declare a global bear market, he'd have put him at the top of the show.)
The play is to buy gold futures and short crude futures, according to Gartman.Oil is historically expensive to gold.
"Dennis and I have talked almost weekly. From time to time we disagree. I believe in economic growth around the world, and that will put a bottom underneath the markets," Bolling said.
Bolling also mentioned that he’s short on corn in the event they keep pushing ethanol.
Gartman suggested that ethanol is driving the corn market because it may be difficult to produce enough corn to meet the demands of ethanol.
“The trade will continue to be to own grains. Own corn, soybeans, and own gold. And you want to be short indexes. Although, I’m less short this afternoon than I was this morning," Gartman said.
He expressed some worry with regard to China; specifically, the country's one child mandate. “I’m concerned about the 18-25 year old men without the civilizing influence of women.” (Most couples in China want boys).
And on the Bolling/Cramer bet...
(Bolling bet Jim Cramer $50,000 that gold and oil will perform better this year than the financials, Cramer's pick). Gartman predicts Bolling will make some mad money on his wager with Cramer.