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speech by any central banker anywhere can live up to

the hype and hope that these two appearances have

been hyped and hoped for. Do we actually believe that
Dr. Bernanke is going to put forth a material new
direction for the Federal Reserve Bank to take at this
conclave in Jackson Hole? No, of course not. Do we
believe that Dr. Bernanke is going to tell the world that
the FOMC is now united behind some new direction,
     some new methods of operation... some new system of
Friday, August 27th, 2010                      open market operations... some palliative that will
Dennis Gartman: Editor/Publisher                            assuage concerns over dissension within the ranks
Phone 757‐238‐9346    Fax 757‐238‐9546                and will set the US economy on a path toward non-
inflationary, steady economic growth. Again, of course
London Sales: Donald Berman, Alberdon International                       
not. Do we expect Mr. Trichet to do the same? Again,
Phone: 011 44(0) 79 8622 1110 
and perhaps even more loudly, of course not. Central
bankers… hopefully… don’t
DEC ’11 CORN: We are  arrive at dramatic new
bullish of the grain markets  systems nor change policy
but we are most bullish of 
corn and we’ve chosen to own  “on a dime.” They arrive at
this rather deferred contact so  decisions by consensus and
that we can add to the trade 
over time, and that is as it
over time and sit patiently by 
as it consolidates, then  should be.
advances, then consolidate, 
the advances again. Patience,  Thus all of the rhetorical
friends, patience! 
wailing and gnashing of teeth
that seems to be going on in the media is to us vastly

OVERNIGHT NEWS:  over-blown and quite possibly illogical and historically

ill-advised. Simply put, it is the duty of the Fed
THE FOREX MARKET IS QUIET ahead Chairman and the President of the ECB to
of the massively touted appearances today in Jackson disappoint… to err conservatively rather than
Hole, Wyoming of Fed Chairman Bernanke and UCB aggressively… to be the very essence of old-guard
President Trichet. Let’s get this out of the way as “Tory” conservatism… to remember that the regime
quickly as we can: we have our doubts that any ancien is better not to be overthrown but maintained.
Give us boring rather than regime change; we’ll take it
every time.
TOPPY? The S&P “gapped” to  That being said, the other
the downside three trading  focus today shall be of the
sessions ago and now is more 
US GDP report… actually
than 50 points below its 200 day 
moving average which we think  a revision rather than a
defines the major trend.  Try as we  new report… for the 2nd
might wish, we cannot “spin” this 
as anything other than  quarter. We usually find
disconcertingly bearish. Strength  revisions to GDP to be
is to be sold into; weakness is not 
to be bought until further… and  reports not worth our time
rather distant… notice.  for let’s be blunt: this is a
revision to data that is now
nearly three months old on average. We are, after all, Mr. Kan will do what he can via “jawboning” the Yen
involved in markets, and markets look forward, not lower, but that is all he or Mr. Noda, his Finance
backward. Why must we even concern ourselves with Minister, really can do. Theirs is a difficult, if not an
data that is a “quarter” old? Well we are forced to this impossible task. Intervening alone may have short
time because the consensus is that the previous term bearish implications for the Yen, but they really
“guess-timate” was that GDP grew 2.4% in the 2 cannot risk a round of intervention that fails. The loss
quarter and now it may be revised downward all the of further “face” would be politically untenable:
way to only +1.3%. In an economy that is $14 trillion in
08/27 08/26
size, a 1% move is indeed material, but what is
Mkt Current Prev US$Change
important here is that we are expected to “guess- Japan 84.65 84.65 unch Yen
timate” monthly data such as employment, or hours EC 1.2725 1.2734 + .09 Cents
Switz 1.0240 1.0305 - .65 Centimes
worked, or durable goods, or jobless claims and to hit
UK 1.5515 1.5580 + .65 Pence
them within very narrow ranges, while the US C$ 1.0585 1.0560 + .25 Cents
government misses its figures on the entire economy A$ .8875 .8875 unch Cents
NZ$ .7045 .7045 unch Cents
by hundreds of billions of dollars! Oh, and let’s not Mexico 13.09 12.95 + .14 Centavos
forget that these revisions are themselves often Brazil 1.7620 1.7630 - .10 Centavos
materially revised years and years into the future… Russia 30.70 30.77 - .07 Rubles
China 6.8001 6.8041 - .40 Renminbi
higher or lower. The whole exercise seems to us to be India 46.82 46.77 + .05 Rupees
futility at its worst and most comical. Prices "marked" at 7:15 GMT

However, that being said, shall we argue too greatly Moving on, late yesterday the Federal Reserve Bank of
with the consensus “guess-timate” of +1.3% rather St. Louis… the keeper of the Monetarist flame amongst
than +2.4%? No we shall not and yes we shall move the regional Federal Reserve Banks… reported yet
on. again that its adjusted Monetary Base has gone
nowhere. Flat-lining like that electrocardiogram of a
Concerning the Yen, there are reports in the important dead man, the adjusted monetary base is now
Japanese media that Mr. Kan will hold a news precisely where it was last October and precisely
conference later today in Tokyo to discuss what his where it was last January and precisely where it was in
government intends to do about the “too strong Yen.” May, and June and July and last week and the week
Mr. Kan is under very real pressure from the Japanese before… Well, everyone should by not get out picture.
exporters to do something… anything!!... to stem the
Yen’s advance, but what really can he do. Firstly, the Growth in this most important monetary aggregate…
Kan Administration’s political power is waning before the one from which all other aggregates arise… is non-
our eyes (cf. our comments regarding the limited existent, and this we find terribly disconcerting. The
nature of Mr. Kan’s tenure in office in our comments on base should be growing by the amount needed to
politics below), so its enthusiasm or ability to take “feed” population growth + a factor to adjust for hoped-
action in the forex market is limited at best. Further, for, non-inflationary economic growth. By holding the
with Mr. Kan’s weakening political powers, he is not base absolutely steady, the Fed is erring toward
likely to garner support from abroad for bi-lateral deflation and this it should not be doing. Worse, and
intervention efforts. Further still, those with the MOF yet again, the currency component of M1 continues to
and the BOJ who oppose intervention will show the rise and since October of last year has risen by
losses suffered by the Swiss National Bank in its approximately $30 billion. In other words, given that
intervention efforts and will say, “Why should our currency is an important part of the adjusted monetary
efforts be any different or of lasting importance?” and base, had it not been for the growth in cash the base
thus dissuade the Administration from acting. would be massively negative for the past year. Worse
even still, cash is lost to the banking system as it is
stuffed under mattresses, stored in brief cases, and Turning to wheat, which led the way higher on the
stored in lock boxes around the world. Cash is news out of Russia in recent weeks, the bears are
deflation defined. This we find terribly disconcerting; hoping to turn prices down and hope further that the
but we’ve found it so for months and crying “Wolf!” recent weakness is more than a mere correction. They
becomes tiring after a while. wheat bears note, properly, that US domestic and
global wheat inventories are still quite high. They are
COMMODITY PRICES ARE right, of course. Global wheat inventories are high, but

STRONGER with the average of the demand is high too and the wheat crops are not
growing larger, they are growing smaller. The
Reuters/Jefferies and DJ/UBS commodity indices
USDA Attaché in Moscow yesterday estimated the
rising 1.0%. The grains are strong; the precious
Russian '10/11 grain output at 62 million metric tonnes
metals… especially again the “white/industrial”
down 36% from a year ago and the '10/11 wheat crop
metals… are strong; the base metals are tenuously
at 41 million metric tonnes. The attaché said, however,
stronger, and only the “breakfast softs”…. Sugar and
that the Russian may still export 5 million metric tonnes
cocoa… are weaker. Coffee, however, is, as we like
of grain this year, including 4 MT of wheat in '10/11.
our coffee in the morning, strong too.
That is manifestly bearish news. Then, rather
Concerning the grains, which were obviously very confusingly, the attaché went on to say that Russia
strong yesterday and which remain very strong this may import 2.4 million metric tonnes of grain in '10/11
morning, the news is of material exports of corn which mostly from the Ukraine and Customs Union countries.
are changing the supple/demand equation as we write. We ask, “Which is it? Will Russia import or export
Our friend, Richard Brock, wrote yesterday that grain, net.” The answer is that Russia will export some
small sums of grain, but in the past it exported large
Corn export sales for the week ended Aug. 19 sums instead. Further, if there is not adequate rain
came in at 68.4 million bushels, topping trade
expectations for sales of 25.5-57 million soon in Russia, the next winter wheat crop is in danger
bushels. U.S. corn export sales for next of not being planted at all, or if planted, planted in dust.
marketing year have now reached 351.5
million bushels which is 23.6% ahead of last Having said that, we must add one caveat: Our long
year's level. The strong early sales pace is
boosting speculation that 2010-11 corn exports standing subscribers from a decade or two past… and
will surpass USDA's current estimate of 2.050 there are large number who’ve been with us that long
billion bushels, which represents just a 3.8% and to them we say “Thanks! Truly… thanks!”… will
increase over projected 2009-10 exports of
1.975 billion bushels. The weekly export sales remember the wise comments from an old and now
report showed strong buying from both Japan long deceased mentor, Mr. Melvin Ford of Lynchburg
and Egypt. Milling Company, regarding wheat. Once, many years
The strong recent corn export sales pace, ago when it appeared that the US winter wheat crop
combined with continued doubts about was going to blow away in spring winds after the crop
Midwest corn yields are boosting concerns that had been planted in virtual dust, Mr. Ford presciently
the U.S. corn supply/demand situation could
be quite tight by the end of 2010-11. said, “Dennis, you must always remember, wheat is a
weed. You can _iss on it and it will still grow.” That
We could not agree more, and the technical situation is
year the US had a then record crop. It is worth
becoming even more certainly bullish than are the
remembering when one gets carried bullishly away
fundamentals. Hence we again recommend turning to
with promises of small winter wheat production
p.1 and looking at the chart of “new, new” Dec’11 corn,
of which we have been long for quite some while and
of which we hope to remain long… and to become 08/27 08/26
longer of sooner rather than later… for some while Gold 1235.6 1239.7 - 4.10
Silver 18.95 18.96 - .01
more. Pallad 500.00 496.00 + 4.00
Plat 1532.0 1533.0 - 1.00 The weekly EIA nat-gas inventory figure was
GSR 65.25 65.40 - .15 marginally above expectations as 40 Bcf of gas moved
Reuters 264.04 261.80 + 0.9%
DJUBS 130.15 128.78 + 1.1% into storage. The pre-report consensus was that 38
Bcf moved in. The actual figure was bearish, but only
ENERGY PRICES ARE HIGHER, BUT ever-so-slightly so and the response to the report was
ONLY MARGINALLY SO as both nat-gas demonstrably bearish, reflecting upon the tenuous
nature of the nat-gas bulls rather than upon the figure
and crude have bounced from the lows made three
itself. The bulls wanted… needed… were pleading for
days ago in New York dealing. However, what has
a much lower number than the pre-report guess-timate.
caught our eye this morning is the massive increase in
When they got something even as slightly larger than
the contango in WTI and the material rise in the price
what had been hoped for, they threw up their hands
of Brent relative to nearby WTI. Firstly, the average
and sold themselves out. Panic liquidation is the mode
WTI/Brent contango has widened materially since
and sadly more likely shall follow as the temperatures
yesterday, and the trend toward every wider contangos
along much of the east coast are now suddenly well
continues as crude is clearly abundant above ground.
below seasonal norms, driving electricity demand lower
The Oct’10/”red” Oct’11 average contango for both
and thus driving nat-gas demand lower still..
Brent and WTI has gone out another 27 cents in the
past twenty four hours to $6.35 with all of that increase
taking place in WTI futures. A week ago, this same SHARE PRICES ARE JUST A BIT
contango was $5.42, with nearby futures higher than LOWER, for having changed not-at-all yesterday
where there are presently. Two weeks ago this same
from Wednesday, they’ve fallen only by the barest of
average contango was $5.14. A month ago it was
margins this morning from yesterday. The global
$4.39! Crude is bidding aggressively… very
markets are marking time until Dr. Bernanke and Mr.
aggressively… for storage when and where it can be
Trichet speak later today. Thumbs are collectively
being twiddled.

Given this widening contango one has to view rallies in

We much prefer bull markets to bear markets, for in
crude as an opportunity into which to sell not a reason
bull markets the world grows wealthy and even when
into which to buy. Further, demand here in the US on
we are wrong at least those around us are growing
the part of refiners is virtually non-existent, for refining
richer. We must always remember, the equity market
margins are low and falling. Thus rather than refining
is not a sum-zero game like the futures markets, for in
crude, all the refiners wish to do at present is own
the latter what one “team” wins is won at the expense
crude and store it to earn the contango. With
of the other “team” because for every long there is an
borrowing costs where they are this is an imminently
equal and off-setting short. In the equity market that is
profitable enterprise. Certainly it is better than refining
simply not true, and as equity prices rise, the global net
crude oil. Hence WTI is driven to a discount to Brent,
worth rises. “This,” as Martha Stewart would say, “is a
with that discount widening in the nearby futures.
good thing.” We would say it is a wonderful thing; a
wondrous thing a fabulous thing. So when share
OctWTI up 27 73.09-14
NovWTI up 36 73.95-00 prices rise, we give thanks.
DecWTI up 51 74.92-97
Jan WTI up 60 75.77-82 When share prices fall, however, even when we are
FebWTI up 69 76.50-55
MarWTI up 72 77.08-13 net short and are manifestly bearish we are dismayed,
AprWTI up 74 76.85-90 for the world’s net worth weakens and no one can spin
OPEC Basket $70.00 08/25 that positively in the long run. Sadly, share prices are
Henry Hub Nat-gas $3.85
weak and falling. As the chart at the lower left of p.1…
the “lead position” in every TGL… shows perhaps all In Japan, the political future for Prime Minister Kan is
too clearly, the S&P is now far below its trend-defining growing darker and darker and it does appear that he
200 day moving average. Would that it were not, but it will soon be forced from office… if not by Mr. Ozawa,
is, and as it is we’ve no choice but to believe that the then by someone else within the DPJ. History is not
trend is down, not up, and that strength is to be sold upon Mr. Kan’s side at the moment given that Mr.
rather than weakness bought. We trust we are clear. Kan’s public disapproval rating has now passed that of
his “approval” rating. The four Prime Ministers who had
To that end, we were long of equities in late July, and preceded Mr. Kan in that office all were forced to stand
we remained there until last Friday when we chose to down rather swiftly after their disapproval ratings had
hove to the sidelines and turn to net neutrality. We’ve gone past their approval ratings, and on average they
remained on the sidelines since. We note that the S&P were forced out within seven months of this happening.
“gapped” lower on Tuesday of this week and we pay Mr. Hatoyama, who had directly preceded Mr. Kan as
attention to “gaps,” especially those that are left open Prime Minister, was forced to stand down within five
for three days and have proved their merit. As we months; Mr. Abe made it for six months after the cross;
write, the stock index futures are all trading higher and Mr. Fukuda and Mr. Aso each made it nine months
that strength should be sold. Historically, bearish more.
markets open higher and close hard upon their lows.
Such was yesterday, such likely shall be today: Worse for Mr. Kan is that he, like Mr. Abe, Mr. Fukuda
and Mr. Aso, had not public election mandate upon
Dow Indus down 75 9,986 which to stand.. All became Prime Ministers when
CanS&P/TSE up 5 11,653 members of their party who had been Prime Minister
FTSE up 46 5,155
CAC up 25 3,475 lost votes of confidence within their own party, leaving
DAX up 13 5,913 them to rise to positions of authority internally and thus
NIKKEI up 85 8,991 without a real public mandate. Kan’s tenure is in its
HangSeng down 29 20,590
AusSP/ASX up 19 4,373 last months; the only questions are when he shall be
Shanghai up 11 2,606 made to stand down and by whom… if not next month
Brazil down 936 63,867 when the DPJ elects a new leader or re-elects Mr. Kan,
TGL INDEX down 0.1% 7,364 then when, and can it really be Mr. Ozawa?

ON THE POLITICAL FRONT Moving on, political courage comes in

we are moving a bit closer to having a strange places, and earlier this week
government in Australia with the victory the out-going Miss Universe, Ms.
yesterday by the centre-right Stefania Fernandez, struck a small
Liberal/National Coalition of one more seat but important blow against the
in the Parliament giving Mr. Abbott and his Chavez regime in Venezuela. Ms.
supporters 73 seats compared to the Fernandez, a Venezuelan citizen,
Labor Party’s 72. There are still several proudly unfurled the old Venezuelan
tens of thousands of absentee ballots yet flag on stage as she passed her
to be counted and there are still a few crown to the new reigning pageant
seats that can swing in one direction or the winner. This was a clear “shot” at the
other, but it does not appear that either Chavez regime for Chavez has
party shall be able to reach the magic 76 changed the flag to fit his needs. Ms.
seats that would give one the majority and Fernandez has refused to accept
the right to form a government but the fact Chavez’ rule, and in her own way has
that the Liberal/Nationals have a one seat struck a small, but elegant, blow for
lead over Labor does move the needle in their favour.
freedom. This has to make you laugh. Greek boat owners
declared less income than the cost of running their
Finally, three Canadian citizens were arrested boats! They were cheating on every front and it was
yesterday by the Royal Canadian Mounted Police and obviously to one and all that they were doing exactly
charged with supporting terrorism. The RCMP said that. Deficits matter and the deficit has forced
that the three who were arrested “posed a real and government there to take action against the tax
serious threat to the citizens of the national capital cheaters and avoiders that had become endemic.
region and Canada’s national security.” Two of the Whatever floats your boat, indeed.
men were from Ottawa; the third lived in London,
Ontario. Oh, and you’ll never guess… all are Muslims! IT’S ARCHITECTURALLY SOUND:
Like the Prefect of Police in Casablanca, “We are
We look for interesting bits of information that seem to
shocked; shocked” that Muslims are at the centre of
escape the other economists/traders/investors on The
Canadian terrorist plots? Who knew? At least this
Street, and one that we’ve become enamoured with
group of Muslim terrorists was not planning to kidnap
regarding building is the Architecture Billings Index
the Prime Minister and execute him as the last group of
compiled by the American Institute of Architects. Like
Muslim terrorists in Canada had been planning. This
the NAPM report, this index moves from 0 to +100, and
group apparently only planned to blow up the
when the index is below 50 billings are decreasing;
Parliament building or some other such nonsense.
when above 50 billings are increasing.

GENERAL COMMENTS The Index “topped” out back in late ’06, either spot on
ON THE CAPITAL MARKET or just a bit ahead of the decline in the US building
industry. Back then the index seemed to be jobbing
about between 50 and 59, and doing so for all of ’06
and most of ’07. However, late in ’07 and early in ’08 it
Those crazy Greek doctors, lawyers, small shop
broke hard below 50 and continued almost inexorably
owners, businessmen and women, dentists,
downward into the first few months of ’09 when it fell all
accountants et al have had their way with the tax code
the way down to 34. At that point, business amongst
there, cheating on their taxes at a pace that can only
the nation’s architects was collapsing. Things looked
be described as awe-inspiring. Even the most
very bleak, and given the lead time between when an
notorious tax “avoiders” here in the States cannot
architect designs something and when it is actually
compared to the tax “avoidance” schemes that the
built, it bode uncommonly ill for building everywhere
Greek upper-and-middle classes take part in. It is really
into this year.
quite astonishing.

Since then, however, the ABI has been rising…

Now the government is taking notice and it is doing
steadily. For the past several months it has hovered
so in the most interesting of ways: it’s watching the
just below 50, so indeed business for the nation’s
nation’s yacht and racing boat facilities to see who
architects is still weak, but it is not nearly as weak as it
shows up and takes his/her boat out. According to one
was a year and a half ago. A glimmer of light on a
Greek government official, in a statement that really
rather bleak horizon? Yes, that’s what we’d say this
captured our fancy,
is…a faint glimmer of light on what has been a very,
very bleak horizon. It will be brighten when the ABI is
Our samples show the majority of power-boat
owners last year declared incomes of less than finally above 50. Here’s hoping that next month it does,
€40,000… an amount that would barely cover but we still have our doubts.
their cost of fuel.
THERE ARE NO JOBS AND NONE afford to retire – is a different argument. As your
partner, I'm happy for you to sell whenever you'd like…
ARE COMING: We don’t like to lift whole clothe because our agreement says, if you sell, you have to
pay me an additional 20% of whatever the capitalized
articles because we fell lazy when we do, but this time value of the business is at that time.
we had no choice but to do so for this is so truly spot-
I know… I know… you put up all the original capital.
on that it could only be lifted whole clothe. Though very
You took all the risks. You put in all of the labor. That's
tongue-in-cheek, there is real wisdom here. Would that all true. But I've done my part, too. I've collected 50%
the Left understood the lunacy of their philosophies: of the profits each year. And I've always come up with
more rules for you to follow each year. Therefore, I
deserve another, final 20% slice of the business.
This Is Why There Are No Oh… and one more thing…
Jobs in America Even after you've sold the business and paid all of my
fees… I'd recommend buying lots of life insurance. You
By Porter Stansberry see, even after you've been retired for years, when you
die, you'll have to pay me 50% of whatever your estate
Saturday, August 21, 2010 is worth.

After all, I've got lots of partners and not all of them are
I'd like to make you a business offer. as successful as you and your family. We don't think
it's "fair" for your kids to have such a big advantage.
Seriously. This is a real offer. In fact, you really can't But if you buy enough life insurance, you can finance
turn me down, as you'll come to understand in a this expense for your children.
All in all, if you're a very successful entrepreneur… if
Here's the deal. You're going to start a business or you're one of the rare, lucky, and hard-working people
expand the one you've got now. It doesn't really matter who can create a new company, employ lots of people,
what you do or what you're going to do. I'll partner with and satisfy the public… you'll end up paying me more
you no matter what business you're in – as long as it's than 75% of your income over your life. Thanks so
legal. much.

But I can't give you any capital – you have to come up I'm sure you'll think my offer is reasonable and happily
with that on your own. I won't give you any labor – partner with me… but it doesn't really matter how you
that's definitely up to you. What I will do, however, is feel about it because if you ever try to stiff me – or
demand you follow all sorts of rules about what cheat me on any of my fees or rules – I'll break down
products and services you can offer, how much (and your door in the middle of the night, threaten you and
how often) you pay your employees, and where and your family with heavy, automatic weapons, and throw
when you're allowed to operate your business. That's you in jail.
my role in the affair: to tell you what to do.
That's how civil society is supposed to work, right? This
Now in return for my rules, I'm going to take roughly is America, isn't it? That's the offer America gives its
half of whatever you make in the business each year. entrepreneurs. And the idiots in Washington wonder
Half seems fair, doesn't it? I think so. Of course, that's why there are no new jobs…
half of your profits.
You're also going to have to pay me about 12% of
whatever you decide to pay your employees because Porter Stansberry
you've got to cover my expenses for promulgating all of
the rules about who you can employ, when, where, and Mr. Stansberry is rather well known on the investment
how. Come on, you're my partner. It's only "fair." speaking circuit. He’s a wise man; a good man and in
Now… after you've put your hard-earned savings at this instance an imminently insightful man. Job
risk to start this business, and after you've worked hard growth? It is none existent and so long as this
at it for a few decades (paying me my 50% or a bit Administration remains in power intact it will remain so.
more along the way each year), you might decide
you'd like to cash out – to finally live the good life. That’s fair, isn’t it?

Whether or not this is "fair" – some people never can

short a southeastern regional bank as well as a global investment
RECOMMENDATIONS bank. Yesterday we exited our position in the restaurant stock.

The CIBC Gartman Global Allocation Notes portfolio for

1. Long of Three and one half Units of the
August is as follows:
C$ and Four and one half of the
Aussie$/short of Eight Units of the EUR: Long: 20% Canadian Dollars; 10% Australian Dollars; 5% gold;,
Thirty four weeks ago we bought the C$ and sold the EUR at 1.5875. 10% silver; 10% corn; 10% sugar; 5% S&P 500 Index; 5% US Ten
Thirty three weeks ago we added to the trade at or near 1.5100, and
year notes
twenty two weeks ago we added yet again, giving us an average
price of 1.5250. The cross is trading this morning at 1.3470
compared to 1.3450 yesterday and it’s moved nicely back in our Short: 15% Euros; 10% British Pound Sterling
favour in the past two weeks. Twenty five weeks ago we bought the
A$ and we sold the EUR at or near .6417. and we added to the trade Horizons AlphaPro Gartman Fund (TSX:HAG): Yesterday’s
yesterday… Tuesday, August 24 . It is this morning .6976.
Closing Price on the TSX: $8.74 vs. $8.73 Yesterday’s Closing
NAV: $8.79 vs. $8.79
2. Long of One and One half Units of Gold:
One Unit vs. the EUR and the remaining CIBC Gartman Global Allocation Deposit Notes Series 1-4; The
Gartman Index: 115.20 vs. 114.85 previously. The Gartman Index
half vs. the British Pound Sterling: This is our II: 92.49 vs. 92.22 previously
“insurance” gold position… our hedge against disaster.

3. Long of Two Units of Dec’11 Corn: Given

Good luck and good trading, Dennis Gartman
the current prices it is reasonable to assume that next year American
farmers will grow wheat and double crop soybeans behind them, and Disclaimer: This publication is protected by U.S. and International Copyright laws. All
shall thus curtail corn planting materially. Thus, we bought new crop rights reserved. This publication is proprietary and intended for the sole use of subscribers.
December ’11 corn at an average of approximately $4.31/bushel No license is granted to any subscriber, except for the subscriber’s personal use. No part
some while ago and we added to it on Friday, August 13 and we of this publication or its contents may be copied, downloaded, stored in a retrieval system,
added to it again Wednesday, August 18 . Our stop remains at further transmitted, or otherwise reproduced, stored, disseminated, transferred, or used, in
$4.08… a risk of 5% on the original position. any form or by any means, except as permitted under the subscription agreement or with
the prior written permission of The Gartman Letter, L.C. (“Gartman”). Any further
If new crop Dec ’11 corn were to close above $4.47 today, we’ll disclosure or use, distribution, dissemination or copying of this publication, message or any
add another unit to the trade. If we are in the final moments of attachment is strictly prohibited.
trade and it appears that that level shall be breeched, act.
Each reproduction of any part of this publication or its contents must contain notice of
Gartman’s copyright. Pursuant to U.S. copyright law, damages for liability or infringing a
The following is not a recommendation, a solicitation or an offer to
copyright may amount to $30,000 per infringement and, in the case of willful infringement;
sell the securities and reflects publicly available pricing information
the amount may be up to $150,000 per infringement, in addition to the recovery of costs
provided for informational purposes only. The Gartman Letter L.C. and attorneys’ fees. Gartman is financial publisher, publishing information about markets,
serves as a sub adviser to the products mentioned below. Investors industries, sectors and investments in which it believes subscribers may be interested. The
in the CIBC Gartman Global Allocation Deposit Notes should go to: information in this letter is not intended to be personalized recommendations to buy, hold or
sell investments. Gartman is not permitted to offer personalized trading or investment advice to subscribers. The information, statements, views and opinions included in this
ProductID=221&NumFixings=2 publication are based on sources (both internal and external sources) considered to be
reliable, but no representation or warranty, express or implied, is made as to their
Existing investors in HAG should go to: accuracy, completeness or correctness. Such information, statements, views and opinions
are expressed as of the date of publication, are subject to change without further notice
and do not constitute a solicitation for the purchase or sale of any investment referenced in
the publication.

The following positions are “indications” only of what we hold in our

the previous trading day. We reserve the right to change our INVESTING IN SECURITIES AND OTHER INVESTMENTS, SUCH AS OPTIONS AND
opinions at a moment’s notice and we reserve the right to take FUTURES, IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.
positions opposite of what maybe in our “Notes” and ETF from SUBSCRIBERS MAY LOSE MONEY TRADING AND INVESTING IN SUCH
time to time as market conditions warrant: INVESTMENTS.

Long: We own “stuff” and the movers of “stuff.” We have Affiliates of Gartman serve as investment advisers to clients, including limited partnerships
and other pooled investment vehicles. The affiliates may give advice and take action with
positions in an iron ore miner, a coal company, and a railroad respect to their clients that differs from the information, statements, views and opinions
company. Yesterday, we exited our position in the steel company. included in this publication. Nothing herein or in the subscription agreement shall limit or
restrict the right of affiliates of Gartman to perform investment management or advisory
services for any other persons or entities. Furthermore, nothing herein or in the
We also own an “Asian” short term government bond fund, the C$,
subscription agreement shall limit or restrict affiliates of Gartman from buying, selling or
Swiss Francs, a small “insurance” position in gold, a crude oil trust, a trading securities or other investments for their own accounts or for the accounts of their
nat gas trust, and a North American midstream energy company. clients. Affiliates of Gartman may at any time have, acquire, increase, decrease or dispose
of the securities or other investments referenced in this publication. Gartman shall have no
Lastly, we own a basket of ag related stocks and ETFs including four obligation to recommend securities or investments in this publication as result of its
affiliates’ investment activities for their own accounts or for the accounts of their clients. If
grain and fertilizer companies as well as an ETF that tracks
you have received this communication in error, please notify us immediately by electronic
agricultural commodity prices generally
mail or telephone. This disclaimer applies to any trial subscription. Anyone who
says otherwise is itchin' for a fight.
Short: We are short the Euro, we own a double inverse broad
equity index ETF to hedge the positions mentioned above, and are