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Dennis Gartman: ECB Won’t Step if Spain’s Bond Auction Tanks

Like so many others on Wall Street, strategic investor Dennis Gartman is focused on the bond auction coming on Thursday in Spain. And his expectations aren’t high.

“Expect the Spanish bond auction to go badly tomorrow (Thursday),” he says on Fast Money. “It’s safe to say, it’s not going to be very good.”

And he also says, don’t expect the ECB to save the day.

If the auction is received poorly, “I think it’s unlikely the ECB will do anything – I don’t think they have the ability, it’s not their policy. Will the ECB come in and make direct purchases? No.”

As a result Gartman says “avoid owning anything in Europe."

If you want to get ahead of the auction, Gartman thinks the winners will be Canada and Spain.

“I expect money will seek safety in the Canadian dollar and Australian dollar – yields are strong, the central banks are in good positions, and of course, the governments are stable,” says Gartman.

Crude Oil

Of course we couldn’t talk with a commodities pro like Gartman and not talk about oil.

Gartrman tells us he's anticipating a long-term decline in Brent with Brent ultimately trading to a discount against WTI.

Gartman cites the decision to reverse the pipeline at Cushing as the major catalyst for the decline – and he thinks the forthcoming sell-off will be significant.

“I think we can see $85 WTI and $85 Brent. In addition to the pipeline reversal which should increase supply, Gartman also says demand is slowing. “The consumer is slowing down the amount of driving they do – and we’re retiring old cars with new ones, which are much more fuel efficient – and we’re finding a lot more crude oil.”


* You can find our entire conversation with Dennis Gartman about 3:30 into the video above.



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Trader disclosure: On Apr 18, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long IBM; Joe Terranova is long MCD; Joe Terranova is long EMC; Joe Terranova is long GS; Joe Terranova is long JOY; Joe Terranova is long HPQ; Joe Terranova is long LQD; Steven Grasso is long ASTM; Steven Grasso is long AVAV; Steven Grasso is long BA; Steven Grasso is long D; Steven Grasso is long FRO; Steven Grasso is long LNG; Steven Grasso is long MHY; Steven Grasso is long NUAN; Steven Grasso is long MO; Steven Grasso is long PFE; Steven Grasso is long PRST; Steven Grasso is long S; Steven Grasso is long XLU; Steven Grasso is long ZAZA; Steven Weiss is long HAIN; Steven Weiss is long EUO; Steven Weiss is long TBT; Steven Weiss is long TBF; Steven Weiss is long ZCOM; Steven Weiss is long HPQ; Steven Weiss is long BRCM; Steven Weiss is long CSC; Steven Weiss is long HKNZ; Steven Weiss is long AAPL; Steven Weiss is long JPM; Steven Weiss is long SNDK; Steven Weiss is short X; Steven Weiss is short MT; Steven Weiss is short FXA; Steven Weiss is short ERIC

For Brian Kelly
Brian Kelly is long IWM
Brian Kelly is long TLT
Brian Kelly is long KRE
Brian Kelly is long AUSSIE $
Brian Kelly is long BUNDS
Brian Kelly is long CANADIAN $
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Steven Grasso is long for STUART FRANKEL MU
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Steven Grasso is long for STUART FRANKEL NYX
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Steven Grasso is long for STUART FRANKEL PRST
Steven Grasso is long for STUART FRANKEL VVUS
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For Dennis Gartman
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CNBC.com with wires.