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"Bernanke Should Quit"

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“The stock market gets weaker for the rest of the year, oil goes to $100 and Bernanke should quit.” So says strategic investor Dennis Gartman, author of The Gartman Letter who joins the panel for this conversation. Following is a synopsis of his main points.

What do you think of today’s Fed action?

"(It) was a public relations ploy of absolutely the worst dimension," says Gartman. "I have been an outgoing spokesperson in favor of Mr. Bernanke but he’s lost my confidence."

What would he have to do to get it back?

"Leave," Gartman replies.

What do your S&P charts suggest for the balance of the year?

"The balance of the year is probably to the downside," Gartman explains. "In all probability we’re going to fail. In my (trading) account we’re skewed marginally to being short... if we take out these lows I’m going to increase the skew, rather materially."

How much technical damage has been done to the S&P?

"A lot," Gartman says. "A lot of technical and psychological damage and I don’t think it will be overcome quickly. If we take out new lows, anyone who’s bought it in the last 2-3 months is in trouble."

How about oil?

"The only thing that I can say is - the long term trend is in its favor… When (oil) won’t go down on warm weather this time of the year -- and all of a sudden the backwardation goes out, the market could make new highs," Gartman says.

Are you long oil?

"We are long of oil equipment stocks because, even when oil was breaking down, these stocks held steady," he replies.

Will oil go over $100

"Yes, I think so," says Gartman.

What’s your gold trade?

"I’m long gold and have been for a while," he replies. "(On) Wednesday, even as the dollar didn’t move, gold went up."

For an in-depth explanation of Dennis Gartman’s technical analysis please watch the video.

Symbol
Price
 
Change
%Change
Z2152
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OIH
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Trader disclosure: On Dec. 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 (ATVI), (YHOO), (INTC); Najarian Owns (CSCO), (ADCT); Najarian Owns (GOOG) Options, (GS) Options, (TSO) Options, (YHOO) Options, (BIIB) Options; Finerman's Firm And Finerman Own (GS), (FTWR); Finerman's Firm Owns (VLO), (SUN), (YHOO), (TSO); Finerman's Firm Owns (MDY) Puts And Is Short (MDY); Finerman's Firm Is Short (SPY), (IJR), (IYR), (IWM), (MBI); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns (BIIB) Options; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts; CNBC Is A Service Of NBC Universal And Dow Jones; GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC; Vivendi Owns 20% Of NBC Universal, The Parent Company Of CNBC

DENNIS GARTMAN
Gartman Owns (GLD), (BRS), (PBR), (FTK), (GMO), (MON), (POT), (SU), (SDS); Gartman Is Short (CEO), (COH), (MBI), (TIF), (LLY), (SBUX); Gartman Owns The Canadian Dollar And Is Short The Euro As A Cross; CIBC Gartman Index Owns Wheat, Soybeans, Corn, Crude Oil, The Euro, Gold