Dennis Gartman’s gold-copper trade

There's a clear trade suggested by chart action in gold and copper, commodities trader Dennis Gartman said Monday.

"I like owning gold, and at the same time I'm always a buyer of one thing, a seller of something else," he said. "If you look at the chart of gold, it's breaking out to the upside. If you look at a chart of copper, it's breaking down to the downside."

On CNBC's "Fast Money," Gartman said that he expected sustained demand from central banks.

"I think the monetary authorities are going to continue to expand the supply of reserves," he said. "That's going to tend to be beneficial to the gold market.

(Read more: Dennis Gartman's 'watershed' shift on gold)

"At the same time, inventories of copper around the world – whether it's in Shanghai, whether it's in the LME – are at or near 10-year highs. That's going to tend to weigh heavily upon the copper markets, so I'm a buyer of gold. I'm a seller of copper."

The editor and publisher of The Gartman Letter said that he liked the two-pronged trade.

"I'm a spreader of one against the other," he said. "And I like both sides of the trade, to be quite honest."

China's weakening GDP growth, Gartman added, would continue to have a "deleterious" effect on copper prices.

(Read more: Carter Worth sees more downside risk in stocks)

Europe, however, was a different story.

"I wouldn't want to be a seller of European equities under any circumstance right now," he said. "The trend is from the lower left to the upper right. And anybody who's been short of European equities in the past several weeks isn't feeling all that comfortable about life."

— By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

— CNBC's Courtney Gartman contributed research to this report.

Trader disclosure: On July 29, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Carter Worth is long .SPX; Carter Worth is long .RUT; Steve Grasso is funds long X; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long BBRY; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long HERO; Steve Grasso is long HPQ; Steve Grasso is long MHY; Steve Grasso is long LNG; Steve Grasso is long MJNA; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long QCOM; Steve Grasso is long S; Steve Grasso is long ASTM; Steve Grasso is long TSLA; Steve Grasso is long DECK; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami's wife, Linda Snow, works at Merck; Dan Nathan is long ZNGA; Dan Nathan is long ZNGA ; Dan Nathan is short BBRY Jan 10/12 put spread; Pete Najarian is long AAPL; Pete Najarian is long BAC; Pete Najarian is long C; Pete Najarian is long AMZN; Pete Najarian is long SBUX; Pete Najarian is long CBS; Pete Najarian is long FB; Pete Najarian is long BBRY ; Pete Najarian is long MRK; Pete Najarian is long PFE.