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Gartman Credits China, Banks for Monster Rally

When the world’s central banks move as one, it pays to listen, commodities trader Dennis Gartman said Wednesday.

“Never fight the fed, never fight when all the central banks are doing something together,” the “Fast Money” contributor said.

Coordinated moves by central banks sent stocks soaring, with the Dow up 400 for its largest one-day gain since 2009 and the S&P 500 gaining more than 45 points.

Commodities Rally On

Another big factor: China changing its bank reserve requirements.

“As I like to say, a reserve requirement change is a two-by-four to the forehead of a mule,” Gartman said. “They’re trying to get everybody’s interest. Don’t fade them.”

“There are few precedents for what we saw today,” he added.

Bank stocks shrugged off credit downgrades to rally along with the broader market. Morgan Stanley shares jumped 11 percent, followed by Citigroup and JPMorgan with 8 percent gains. Bank of America and Goldman Sachs posted 7 percent pops.

Had it not been for China’s move, Gartman said, bank stocks would’ve been down dramatically.

“BAC under $5 is a long-term leap on the United States,” he said.

Earlier in the day, Gartman also praised the liquidity move by central banks of Canada, Japan and Switzerland, along with the ECB, the U.S. Federal Reserve and the Bank of England.

The founder of The Gartman Letter also touched on several other topics.

Big gains for steel, such as U.S. Steel, up 15 percent for the day: “I think that this is a bet on growth around the world. It’s going to happen again,” he said. “The oldest lesson I’ve learned in this business: You want to own those, you want to own steel, you want to own copper, you want to own railroads — simple ideas. And we’re going to get growth again. It’s going to happen.”

Billionaire Leon Cooperman’s angry missive to President Obama: “When the central banks come in and are making sure the liquidity is available to you, when something like China happens, then those who aren’t bullish have to turn,” he said. “Leon’s been a little ahead of the game. My bet is that he adds to his positions because I think he’s got it right.”

The euro play: “Don’t get too excited about the euro getting that strong,” he said. “It gained on the U.S. dollar but it lost relative to every other currency.”

Going long: “I’m long in the Canadian dollar, I’m short euros, I’m long gold.”

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Trader disclosure: On Nov. 30, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Fisher owns CCJ; Gartman is long GOLD Futures; Gartman is long S&P 500 futures; Gartman is short euro currency; Gartman's Canadian fund is long of gold; Gartman's Canadian fund is long Canadian dollar; Gartman's Canadian fund is long Australian dollar; Terranova is long VRTS; Terranova is long LQD; Terranova is long MUB; Terranova is long AXP; Terranova is long IBM; Terranova is long EMC; Terranova is long SU; Terranova is long CNI; Terranova is long DECK; Terranova is long NCR; Terranova is long HES; Terranova is long CSCO; Terranova is long CAT; Terranova is long LULU; Terranova is long SWN; Terranova is long UPL; Terranova is long TRLG; Terranova is long SBUX; Najarian is long AAPL; Najarian is long C; Najarian is long INTC; Najarian is long AKS calls; Najarian is long JPM calls; Najarian is long WDC calls;

Jim Caron
Morgan Stanley makes market in U.S. Treasuries with wires.