Agreeing with Barton Biggs, Dennis Gartman told Fast Money that investors should expect the market to “melt up, not melt down” by year’s end. There’s so much bad news out there but stocks and commodities both continue to go higher on plenty of liquidity, he said.
Gartman said the unbelievable volatility in oil is “nonsense” and the oil market is just trading on speculation. When oil hits $100 – which Gartman fully expects - he won’t sell it, but he will be long natural gas instead. Nat gas isn’t involved in the same geopolitical circumstances as crude and therefore doesn’t have to deal with so much speculation, he said.
Gartman will also continue to own big-ticket commodities like wheat, gold, copper and steel. The Fed has given investors reason to buy these kinds of things, Gartman said, in addition to the strength of the world economy.
And while he expects a bullish rest of the year, Gartman reserved plenty of bearish sentiment for the financials. “If you can’t rally on the news of a rate cut, you’re going lower,” he said. He also said he wouldn’t be surprised if Countrywide Financial (CFC) was at zero in six months.
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Trader disclosure: On Oct 31, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian owns options in (BIDU), (GOOG), (MER), (YHOO); Macke owns (YHOO), (DIS); Carter Worth’s firm is a market maker in (DRYS), (YHOO); Gartman is short (CMI), (MBI), (COH), owns (GMO), (BQI), (GLD), (SJT), (PBR); CIBC Gartman Index is long the EUR, owns Gold, Crude Oil, Soybeans, Corn