'Fast Money' Recap: Oil Tops and Market Drops
01/02/08 - 10:12 PM EST
Stockpickr Staff
The stock market started off the new year in an ugly fashion on Wednesday with oil briefly touching $100 a barrel. The Dow finished down 220 points and the Nasdaq dropped 42 points. With gold also hitting a record high, the crew at CNBC's "Fast Money" called in Dennis Gartman to talk about commodities and Charlie Gasparino came by to discuss the financial sector.
Dennis Gartman on Commodities
Dennis Gartman, author of The Gartman Letter explained that the move to $100 in oil was fake because it was only a one lot trade that printed the historic price. Having said that, he thinks oil will trade to $100 again in a more liquid market. He continues to like the up trend in oil and he feels the trade is to be on the long side of crude.
Gold soared to a record 28-year high above $850-an-ounce. Seymour says gold and oil are trading at tandem here.
Gold isn't going to stop its uptrend anytime soon, according to Gartman. He called gold the third major currency in the world behind the euro and the US dollar. Guy Adami called gold a dangerous trade because you can wake up one morning it will be down $20. Gartman counters that the way to trade gold is to buy streetTRACKS Gold(GLD Quote - Cramer on GLD - Stock Picks) and hedge it with put options on the mining names like Newmont(NEM Quote - Cramer on NEM - Stock Picks) or Barrick(ABX Quote - Cramer on ABX - Stock Picks).
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