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Gartman: Don't Expect European ‘QE Too’

Will the ECB go for QE too?

Expectations that the ECB will step up purchases of government bonds -- while keeping its benchmark interest rate unchanged at the record low of 1 percent -- was partly behind Wednesday's massive stock market rally.

Expect the Street will be closely watching Thursday’s meeting of European policymakers to see if they follow Bernanke and start to buy bonds en masse.

What’s the trade? How should you position?

Instant Insights with the Fast Money traders

I’m not sure that the ECB will follow Bernanke and do their own QE2, says strategic investor Dennis Gartman on Fast Money. If investors are expecting the ECB to come in and do something aggressive, they may be ill-advised.

But I wouldn’t sell into this S&P rally, he says. The market just put in one of the strongest performances that we’ve seen in a long time. I think the market wants to go higher.

As for the euro, I think Wednesday’s gains were a dead cat bounce, says Gartman. That’s not to say it can’t trade to 133. But the problems of Europe aren’t going away any time soon. I’d sell strength in the euro. My trade remains long gold and short euro.

You may remember that only a few days ago Dennis Gartman told the desk that he thinks the euro is facing terminal problems. Click here to go to: Halftime—Dennis Gartman: 'Eventually, the Euro Breaks Apart'




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Trader disclosure: On December 1, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian owns (WFT) call spread. Pete Najarian owns (MEE) call spread. Pete Najarian owns (F) bonds. Pete Najarian owns (GDXJ) call spreads. Pete Najarian owns (GRS) calls. Pete Najarian owns (TCK) call spread. Pete Najarian owns (C), (PFE), (CNI) and (DOW). Karen Finerman owns (AAPL) and (BAC). Joe Terranova Owns (FCX), (UPL), (C), (PEP), (VRTS), (OXY), (AXP), (GS), (POT), (AAPL), (NKE) and (OIH). Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC) and (MSFT). Stephen Weiss owns (VZ), (MEE), (UPS), (JWN), (QCOM), (TBT), (COP) and (DVN). Steve Cortes is short (UNP). Steve Cortes owns (GS), (MS), (BAC) and (CME). Steve Cortes is short German DAX. Steve Cortes is long U.S. Dollar vs. Mexican Peso, Euro, Australian Dollar Steve Cortes is long U.S. 2-year treasury notes.

KAREN FINERMAN
Finerman’s firm owns (BKS)
Finerman & Finerman’s Firm owns (JPM)
Finerman & Finerman’s Firm owns (MSFT)
Finerman’s firm is short (IJR)
Finerman’s firm is short (MDY)
Finerman’s firm is short (SPY)
Finerman’s firm is short (IWM)
Finerman’s firm owns S&P 500 and Russell 2000 puts

JOE TERRANOVA
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (ALK)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EPR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (MGRC)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DRYS)

GUY ADAMI
Adami’s wife works at Merck

MIKE KHOUw
Cantor Fitzgerald makes a market in (AAPL)
Cantor Fitzgerald makes a market in (ALTR)
Cantor Fitzgerald makes a market in (ANR)
Cantor Fitzgerald makes a market in (ARMH)
Cantor Fitzgerald makes a market in (BAC)
Cantor Fitzgerald makes a market in (C)
Cantor Fitzgerald makes a market in (CSCO)
Cantor Fitzgerald makes a market in (DDAIF)
Cantor Fitzgerald makes a market in (F)
Cantor Fitzgerald makes a market in (FCX)
Cantor Fitzgerald makes a market in (FDX)
Cantor Fitzgerald makes a market in (GM)
Cantor Fitzgerald makes a market in (JPM)
Cantor Fitzgerald makes a market in (LLTC)
Cantor Fitzgerald makes a market in (MEE)
Cantor Fitzgerald makes a market in (MOT)
Cantor Fitzgerald makes a market in (MSFT)
Cantor Fitzgerald makes a market in (NVDA)
Cantor Fitzgerald makes a market in (QCOM)
Cantor Fitzgerald makes a market in (RIMM)
Cantor Fitzgerald makes a market in (TSN)
Cantor Fitzgerald makes a market in (TXN)
Cantor Fitzgerald makes a market in (UPS)
Cantor Fitzgerald makes a market in (VZ)

DENNIS GARTMAN
Funds managed by Gartman own (MSC),
Funds managed by Gartman own (RJA)
Funds managed by Gartman own (BPT)
Funds managed by Gartman are short (DB)
Funds managed by Gartman are short the S&P 500
Funds managed by Gartman are short the Euro
Funds managed by Gartman are short the Japanese Yen
Funds managed by Gartman own Gold

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (GDXJ)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (JPM)
Accounts Managed By Kanundrum Capital Own (C)
Accounts Managed By Kanundrum Capital Own (WFC)
Accounts Managed By Kanundrum Capital Own (RDC)
Accounts Managed By Kanundrum Capital Own (ARMH)
Accounts Managed By Kanundrum Capital Own (AAPL)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (QCOM)



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