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Second Quarter Playbook

It’s a good thing traders typically focus the future. If they spent too much time reliving the past they wouldn’t be happy at all. The Dow just ended its worst quarter since 1939!

The move in the S&P 500 wasn't nearly as historic. It was only the worst quarter for that index since 2001.

But that’s all in the past. Oh sure, it makes for interesting cocktail conversation but what really matters is the future. And for insights on how to trade going forward we turn to strategic investor Dennis Gartman.

“I’ve always like stuff,” says Gartman. He means the kind of thing that if you drop on your foot, it hurts. And he really likes stuff now because he thinks "building is going to turn around.”

In fact Gartman thinks that we’re building so few houses right now (400,000 new units in a year) that “we’re going to have a shortage of housing in the not too distance future and I want to own the things that go into building.”

You read it here. Dennis Gartman foresees a housing shortage!

As a result he likes copper because it goes into stuff. "If we just get housing units up to 1 million a year which is still low by historical standards, copper should move up."

But Gartman's long copper thesis isn't strictly based on fundamentals. He also likes the technical action. “It doesn’t make new lows even when the news is bad.”

And he thinks the best way to play copper is with stocks. (Trading futures contracts is somewhat volatile.) Specifically, Gartman suggests owning Freeport McMoRan or Southern Copper.

And in case you’re looking for more trades, Gartman also recommends long Alcoa and a currency trade -- short the yen against the U.S. dollar.



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Trader disclosure: On Apr 1st, 2009, 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 (GS), (GE), (FAS), (WMT), (AAPL), (MOS); Macke Is Short (BRK.b): Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU): Finerman Owns (RIO): Finerman's Firm Owns (MSFT), (RIO): Finerman's Firm Is Short (IJR), (MDY), (SPY), (USO), (IWM), (BAC), (BBT), (WFC): Finerman's Firm Owns (BAC) Preferred: Finerman Owns (BAC) Preferred: Finerman's Firm Owns (WFC) Preferred; Finerman's Firm Is Short (BWA); Finerman's Firm Owns (TDC); Najarian Owns (AAPL) Call Spread; Najarian Owns (BNI) Call Spread; Najarian Owns (C) Call Spread; Najarian Owns (FAS) Call Spread; Najarian Owns (PALM) & (PALM) Calls; Najarian Owns (RIO) Calls; Najaria Owns (SWY) Calls; Najarian Owns (POT) Call Spread; Najarian Owns (XHB) Call Spread; Najarian Owns (CREE) Calls