Dennis Gartman predicts massive waves of selling in commodities

game over?
Dont have a link because he said on his letter this morning and its a violation to copy paste it.
Hes a long-term bull but said 'he never believed commodities were an asset class' and that the CFTC will close the swap loophole and impose position limits,this will send billions out to sell.

I think he is a little too early, CTFC chairman and most commisioners were appointed by bush, they are not socialist ignorants. they will close this thing one day im just not sure its now, plus I think they will try to make this ordely as possible, no way they will announce an overnight gigantic margin call on the entire market that can send the CRB crashing and load futures brokers with bad debts
plus what prevents other issuers to create new ETFs and index funds if people are forced out of goldman,aig,rogers because they hit their limit?

 

Interesting. Would be nice to read, though.

So are you now saying there is speculation causing a price run up?

 

I think they will close the loophole too and I predict a sell off as well. I don't know when and where and I'm trying to find some markets that look good to me. Coffee and corn for starters. I'm looking at march 09 corn puts 5.00. It'll be a wild ride fellas. Like it hasn't already though!!!

 

daal is right about no overnight announcements, imagine the shit storm that would create. we are living history either way though

 

no. but if you force 10 billion dollar hedge funds to unwind..

 

Wait a second. You don't think there is speculation driving up the price of oil, but you believe that forcing 10 billion dollar hedge funds to unwind will cause the price of oil (and other commodities) to collapse.

I'm missing something here. Can you further clarify? Are you saying the hedge funds are taking delivery of oil because they use it?

 

I'm referring to a margin call scenario, massive amounts of forced selling against a the normal quantity of bids, is this too foreign to you?

 

I don't speak for Daal but I view it in the way that the hedgies were trading contracts in the grains that didnt exist. There was more open interest in beans, corn and wheat than ever could have been produced and that of course adds some spec. premium. I just wanted to throw that out there. I'll sit back and enjoy the debate while watching my coffee shorts and enjoying a delicious cup of coffee have fun fellas

 

means its time to buy soon.


thanks for the article

 

Thanks for posting Daal. It all sounds like BS to me on Dennis' part. "commodities was never an asset class"? Are you kidding me?