×

Dennis Gartman: Copper Floor Could Be as Low as $2

Dr. Copper continues to diagnose weakness with the red metal hitting another 14-month low. But our traders wanted a second opinion.

And who better to ask for a consult than commodities king, Dennis Gartman, author of the Gartman Letter.

Unfortunately, Gartman confirmed that the patient appears to be on life support.

”Too many people have put too much faith in China,” he explains. “And a marginal slowing in China’s economy is enough to put downward pressure on copper.” By proxy that signals trouble for the global economy.

And to make matters all the worse for bulls, copper declined on Monday despite fundamental reasons for it to rally.

Even though the Institute for Supply Management's September manufacturing index topped consensus forecasts and the government said August construction spending unexpectedly rose copper couldn't find traction.

And according to Gartman, that says we're heading into bear territory. “In bear markets good data is absolutely cast aside,” Gartman explains.

“I see no catalyst right now to turn copper higher,” he says. Could it trade to $2? Yes it very well could.

And it's not just copper. "There's too much inventory in zinc, aluminum, tin - all the base metals," he adds. "And the charts of the base metals all look broken. I think it's telling us the global economy is in a precarious position."







______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On Oct 3, 2011, 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); Seymour owns (BAC); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Terranova is long LQD; Terranova is long MUB; Terranova is long VRTS; Terranova is long OXY; Terranova is long HOS; Terranova is long OIH; Terranova is long AXP; Terranova is long EMC; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM;
Finerman’s firm is short AAPL calls; Finerman owns AAPL; Finerman owns BAC; Finerman owns GOOG; Finerman’s firm owns JPM leaps; Finerman owns JPM; Finerman owns IWM; Finerman owns MDY; Finerman owns SPY

For 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 Building Materials Holdings
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 (EXR)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LHO)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of Sun Pharmaceutical Industries Ltd
Virtus Investment Partners Owns More Than 1% Of (RLI)
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 (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
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 Domino's Pizza UK & IRL PLC

Robert Mcadoo
No Disclosures


CNBC.com with wires.