Back on October 7, WTI had just crossed $50 and Dennis Gartman infamously told CNBC's Fast Money that "this is the most bullish I've been on crude [5]." So just over a month later, with flirting for the seond day in a row with a $30 handle, what does Gartman think now? Well, since the price chart of oil is from the top left to the bottom right, Gartman's assesment is simple: "It is time to sell crude oil once again"
NEW RECOMMENDATION: It is time to sell crude oil once again, and the risks are small while the potention seems large. Let’s sell a bit of both WTI and Brent crude, sufficient to be one unit in aggregate with nearby January WTI trading at or near to $41.85 and nearby Brent trading at or very near to $44.23. We’ll risk 2% on the position, so the stops shall be $42.10 and $45.11 respectively, and we’ll use our “hour or so” methodology; that is, we’d want to see crude trade through those levels “for an hour or so” before activiating the stops in question.
And visually:
[6]
Andy Hall's thank you note to Dennis is now in the mail .
