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Dennis Gartman doubles down on commodity play

Gartman: Folding on fracking (HCLP)

After booking profits from a recent play in the fracking industry, Dennis Gartman of "The Gartman Letter" said on Wednesday that the move allowed him to dive into an aluminum producer.

On CNBC's "Fast Money" on Monday, Gartman said that the increased tensions in Iraq would put the spotlight on the American fracking industry. "The United States clearly is becoming more and more self-sufficient as far as energy is concerned. Fracking is the real place to be," he said.

Gartman suggested following the methodology that investors used in the era of the California Gold Rush; namely to buy the industries that supported mining, such as tent and equipment makers, rather than gold itself.

"In fracking, the place to be is to take a look at owning the people who supply stuff to the fracking industry ... the frackers need sand and water," he said.

Using that logic, Gartman chose monocrystalline sand producer Hi-Crush Partners as his top fracking play. By mid-week, shares of Hi-Crush Partners had risen by nearly 15 percent.

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On Wednesday, Gartman said that he had taken profits in the sand-maker and re-invested them into domestic aluminium.

"I continue to buy aluminum; I bought more aluminum today; and aluminum stocks made new highs on the close," he said.

Gartman's aluminum play is based on his belief in the global recovery.

"I'm going with the very simple things incumbent in long-term economic growth," he said.

By CNBC's Michael Newberg