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Greenback Comeback?

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Strategic investor Dennis Gartman predicted a greenback comeback on “Fast Money” last week. Monday, the dollar had its biggest jump in a year. Will it continue and what's the trade if it does?

Dennis Gartman, author of The Gartman Letter, joins the panel for this conversation.

“I think you have a lot further movement in the dollar to the upside,” says Gartman. “Watch the Canadian dollar. In the past 4 days you had the biggest rally for the US dollar as compared to Canada that I’ve seen in my lifetime.”

Does the immediate correlation suggest depreciation in gold and soft commodities?

“Yes all of it,” says Gartman. “I wouldn’t be surprised to see gold down another $40. The public is almost “silly” long and the public is going to be made to look foolish.

How about oil?

“I think it’s down $10-$15 from last week’s highs,” Gartman answer. “I wouldn't be surprised to get that kind of fall before Thanksgiving.”

He adds, “The Saudi’s might announce an increase and that’s enough to damage the (bullish) psychology. That’s what boosted oil price. It was a speculative trade that took the market to $98.”

How are you playing commodities now?

“I’m minimally long gold as an insurance position,” Gartman says. “And I’m short crude - but I'm doing it by shorting large American oil companies that are breaking down at the top.”

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Trader disclosure: On Nov. 12, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC), (YHOO), (EMC); Najarian Owns (AMTD) Options, (BHP) Options, (C) Options, (CSCO) Options, (DISH) Options, (EMC) Options, (GOOG) Options, (GS) Options, (YHOO) Options; Finerman's Firm And Finerman Own (GS), (HD); Finerman's Firm Owns (AMTD), (PLCE), (KSS), (NMX), (NYX), (WMT), (YHOO), (LTD); Finerman's Firm Is Short (IWM),(IJR), (SPY), (MDY), (IYR), (LEH), (MER; Finerman's Firm Owns (MSFT) Options, (TGT) Options; Finerman's Firm Owns (HD) Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts; Charles Schwab Is A Sponsor Of Fast Money

Gartman Owns (RIG), (BRS), (YZC), (BQI), (GMO), (DE) (PBR), (DOG); Gartman Is Short (MBI), (ABK), (XOM), (COP); CIBC Gartman Index Owns Corn, Soybeans, Gold, The EUR,Crude Oil; CIBC Gartman Index Is Short S&P Futures

CORRECTION: Wachovia bought Golden West, Not Washington Mutual as stated by guest trader Tim Seymour on Friday November 9th so that's not a reason to dislike WaMu's stock.