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Fed's Last Move Of The Year

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Friday’s better-than-expected jobs report could discourage the Fed from making deep cuts next week. How low will they go or will they even cut at all?

Strategic investor Dennis Gartman, author of The Gartman Letter, joins the panel for this conversation. Following are excerpts.

Will the Fed decision drive the market higher next week (if they cut) or is a rate cut already priced in?

I doubt it will drive the market higher, says Gartman. Is there a meeting more widely followed than this one? They make their intentions known. The only debate is whether it will be a 25 point cut or a 50 point cut. And I think a 50 point cut is already in the market.

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What do you think? Will the Fed decision drive the market higher? Take the Fast Money / Charles Schwab Pollnow!
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So the stock market has priced this in?

Yes adds Gartman, however I wouldn’t be surprised if we also get a reserve adjustment.

What does that mean?

Reducing reserve requirements is the largest injection of reserves that the Fed can put into the system, he explains. Money goes into banks that can be re-lent, and re-lent again. "It’s the 2X4 to the mule of the market."

What’s your best trade?

I like fertilizer names such as Potash (POT) as well as oil drillers and gold. And I’m short Tiffany (TIF) and other high end retailers.

Symbol
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NASDAQ
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S&P 500
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Trader disclosure: On Dec. 7, 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), (ATVI), (DIS); Najarian Owns (TGT) Options, (XMSR) Options, (BSC) Options, (EMC) Options; Finerman's Firm And Finerman Own (GS), (PLCE),(EL),(CROX),(JWN); Finerman's Firm Owns (KSS), (SKS), (WMT); Finerman's Firm Is Short (SPY), (IJR), (IYR); Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Is Short (MDY) And Owns (MDY) Puts; Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns (BIIB) Options; Vivendi Owns 20% Of NBC Universal, The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC.

Dennis Gartman

Gartman Owns (POT), (GMO), (FTK), (MON), (GLD); Gartman Is Short (COH), (TIF), (HOG), (FXC), (FCE); CIBC Gartman Index Owns Wheat, Corn, Soybeans, Crude Oil.