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Gartman: Ride Commodity Comeback With These 3 Stocks!

As we mentioned commodities were rocking Wednesday after news that China foreign-exchange reserves rose to more than $2 trillion as investors pumped money into the country.

It’s widely believed that China will diversify some of these reserves into strategic resources like metals and soft commodities.

However, a lesser reported factor behind the move stems from weakness in the U.S. dollar. America’s greenback fell to a one-month low against major currencies on Wednesday as investors embraced higher-risk and higher-yielding investments.

Remember, most commodities are nominated in dollars and a weaker dollar makes them more expensive relative to other currencies.

How should you trade it? We asked esteemed commodities trader Dennis Gartman, author of The Gartman Letter.

“When I walked in this morning and saw the dollar as weak as it was and commodities prices higher I knew the commodity equities were going to follow,” Gartman said. And they did.

So what's the trade?

Gartman likes playing aluminum and grains. Before the broadcast Gartman told our producers he recommends the following:

Gartman’s Ways To Play

LongAlcoa
LongKellogg
LongGeneral Mills

And on Thursday morning I think I’m a buyer of Bucyrus, Gartman added.


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Trader disclosure: On July 15th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (DRYS), (EEM), (FXI), (MON), (POT); Seygem Asset Management Owns (NOK) Calls; Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC), Finerman Owns (WFC) Preferred Shares; Finerman's Firm Owns (CSCO), (MSFT), (YUM), (HPQ); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (CAKE), (CPKI), (USO); Najarian Owns (CSCO) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (JPM) Call Spread; Najarian Owns (MCD) Call Spread; Najarian Owns (MFE) Calls; Najarian Owns (MOS) Call Spread; Najarian Owns (MS) Call Spread; Najarian Owns (MSFT) And Is Short (MSFT) Call; Najarian Owns (PALM) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO) Call Spread; Najarian Owns (DELL) Calls; Najarian Owns (INTC) Calls; Najarian Owns (ORCL) Calls; Terranova Owns (TER), (RIMM), (MSFT), (SUN), (FTO); Terranova Owns (CCE) Calls

GE Is The Parent Company Of CNBC

Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

Virtus Investment Partners Owns More Than 1% Of (ABD); Virtus Investment Partners Owns More Than 1% Of (CBL); Virtus Investment Partners Owns More Than 1% Of (CAL); Virtus Investment Partners Owns More Than 1% Of (CLB); Virtus Investment Partners Owns More Than 1% Of (DLR); Virtus Investment Partners Owns More Than 1% Of (EXR); Virtus Investment Partners Owns More Than 1% Of (IGE); Virtus Investment Partners Owns More Than 1% Of (MEE); Virtus Investment Partners Owns More Than 1% Of (DBC); Virtus Investment Partners Owns More Than 1% Of (DBV); Virtus Investment Partners Owns More Than 1% Of (DBA); Virtus Investment Partners Owns More Than 1% Of St Mary Land & Exploration Co; Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights; Virtus Investment Partners Owns More Than 1% Of (SKT); Virtus Investment Partners Owns More Than 1% Of (TNB); Virtus Investment Partners Owns More Than 1% Of (UA); Virtus Investment Partners Owns More Than 1% Of (WBMD)

For Dennis Gartman:
Gartman Owns (AA)
CIBC Gartman Index Owns (AA), (K), (GIS), (X)

For Zachary Karabell:
Karabell Owns (IBM), (GOOG)

For Mark Mahaney:
Employees Of Citi Own (GOOG)
Citigroup Global Markets Or Affiliates Owns 1% Or More Of (YHOO)
Citigroup Global Markets Or Affiliate Received Non-Investment Banking Compensation From (GOOG), (YHOO) In Past 12 Months
(GOOG), (YHOO) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Non-Securities Related And Non-Investment Banking, Securities-Related)
Citigroup Global Markets Is A Market Maker In (GOOG), (YHOO)



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