Dennis Gartman: Gold Likely to Outperform Stocks

A stock market rally on U.S. employment growth wasn’t enough to move noted commodities trader Dennis Gartman back into equities — or away from gold.

“I’m comfortable sitting on the sidelines,” he said on “Fast Money.”

Gold hit a high of $1,714.90 per ounce midday after dropping to $1,670 in earlier trading.

The editor and publisher of the widely followed Gartman Letter said he remained positive on gold — “violently bullish in yen terms; I’m avoiding it in dollar terms” — and was “dead-solid neutral” on equities.

That position appeared solid, especially as the Indian rupee weakened and may have spurred buyers at the bottom.

“If you owned gold in yen terms, you never even get spooked,” he said, adding that a $10 drop earlier in the day did not cause him any worry. “It’s simply a better trade.”

The Labor Department employment report — showing a net gain of 227,000 new private-sector jobs — could bode well for equities.

“Let’s be blunt. Today’s number was really quite a good number, and I don’t think enough people are paying attention to how important the revisions are,” he said. “I always say that the direction of revision in most economic data is as important as the data itself, and the revisions have consistently been for the better.”

Gartman said the jobs report clearly showed employment was improving in the United States.

“Clearly, the economy is doing better,” he added.

The indicators suggest that the stock market would do well, but Gartman said they already have shown strength and he did not like its exposure at this point. In fact, he said he owned some shipping and natural gas, but was betting on the S&P to outperform them.

Patty Edwards of Trutina Financial said she was a gold buyer — but she also liked coal player Walter Energy and natural gas via CVR Energy.

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Trader disclosure: On March 9, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karabell is long AAPL; Karabell is long IBM; Karabell is long TGT; Karabell is long JOYG; Karabell is long SBUX; Karabell is long ADSK; Karabell is long FCX

For Zach Karabell
River Twice is short XLF

River Twice is short JCP

For Patty Edwards
Trutina Financial is long AAPL

Trutina Financial is long QCOM

Trutina Financial is long WLT

Trutina Financial is long CBI

Trutina Financial is long GLD

Trutina Financial is long SNPS

Trutina Financial is long SBUX

Trutina Financial is long HD

Trutina Financial is long HLF

Trutina Financial is long PGM

For Dennis Gartman
Gartman is long of gold in yen terms

Gartman is long an “Asian” short term government bond fund

Gartman is long Corn

Gartman is long Soybeans

Gartman is long C$

Gartman is long A$

Gartman is long Gold

Gartman is long Copper

Gartman is long S&P 500 Index.

Gartman is long Euro

Gartman is long Swiss Franc

Gartman is long Yen

For Romit Shah
(TXN) Nomura Securities International makes a market in securities of the issuer

A Nomura Group Company holds 1% or more of any class of common equity securities of the issuer

For Camilla Sutton
No disclosures

For Tobial Levkovich
No disclosures

For Keith Siegner
(SBUX) The analyst(s) responsible for preparing this research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities.