Chartology - Leading The Turnaround

It seems likely this year will go down in Wall Street history as among the most important since 1929.

As you know all to well, the mortgage mess morphed into a crisis of epic proportions that ultimately took down two Wall Street firms, a handful of commercial banks, an insurance giant, and maybe even an auto company.

But as we head into the new year, are banks stocks starting to turn the corner? Dennis Gartman consults the charts to find out.

CHART #1: Citigroup (C)

I’d stay away from the multinational banks. They probably have more toxic assets on their balance sheets. It’s hard to buy a chart that looks like this.

CHART #2: KBW Bank Index (BKX)

If you want to own a lot of banks own this. It’s less volatile.


This bank stock has made its lows and held its lows. I’d rather own any regional bank than a money center bank. They have far less problems with their balance sheet.

CHART #4: (GLD) 5-years

For months I’ve been bearish on gold, but now the charts look bullish. The trend has stopped going down. I’d be a buyer.

To see Dennis Gartman's full analysis please watch the video.

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Trader disclosure: On Dec. 26th, 2008, 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 (MSFT), (WMT), (TM), (SDS), (MCD); Pete Najarian Owns (UYG) And Is Short (UYG) Call; CIBC Gartman Index Owns Gold, Natural Gas; CIBC Gartman Index Is Short Crude Oil; CIBC Gartman Index Is Long The Grain Market; CIBC Gartman Index Is Long Hong Kong Shanghai Composite Stock Index; Citibank is a client of Dennis Gartman

Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (OFC), (DLR), (EXR), (IGE), (MAC), (DBC), (DBV), (SKT), (UA), (CLB); Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights