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-
Email dennis@thegartmanletter.com                   
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.
THE S&P: OMINOUSLY 
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,
involved in markets, and markets look forward, not
backward. Why must we even concern ourselves with
data that is a “quarter” old? Well we are forced to this
time because the consensus is that the previous
nd
“guess-timate” was that GDP grew 2.4% in the 2
quarter and now it may be revised downward all the
way to only +1.3%. In an economy that is $14 trillion in
size, a 1% move is indeed material, but what is
important here is that we are expected to “guess-
timate” monthly data such as employment, or hours
worked, or durable goods, or jobless claims and to hit
them within very narrow ranges, while the US
government misses its figures on the entire economy
by hundreds of billions of dollars! Oh, and let’s not
forget that these revisions are themselves often
materially revised years and years into the future…
higher or lower. The whole exercise seems to us to be
futility at its worst and most comical.
However, that being said, shall we argue too greatly
with the consensus “guess-timate” of +1.3% rather
than +2.4%? No we shall not and yes we shall move
on.
Concerning the Yen, there are reports in the important
Japanese media that Mr. Kan will hold a news
conference later today in Tokyo to discuss what his
government intends to do about the “too strong Yen.”
Mr. Kan is under very real pressure from the Japanese
exporters to do something… anything!!... to stem the
Yen’s advance, but what really can he do. Firstly, the
Kan Administration’s political power is waning before
our eyes (cf. our comments regarding the limited
nature of Mr. Kan’s tenure in office in our comments on
politics below), so its enthusiasm or ability to take
action in the forex market is limited at best. Further,
with Mr. Kan’s weakening political powers, he is not
likely to garner support from abroad for bi-lateral
intervention efforts. Further still, those with the MOF
and the BOJ who oppose intervention will show the
losses suffered by the Swiss National Bank in its
intervention efforts and will say, “Why should our
efforts be any different or of lasting importance?” and
thus dissuade the Administration from acting.
Mr. Kan will do what he can via “jawboning” the Yen
lower, but that is all he or Mr. Noda, his Finance
Minister, really can do. Theirs is a difficult, if not an
impossible task. Intervening alone may have short
term bearish implications for the Yen, but they really
cannot risk a round of intervention that fails. The loss
of further “face” would be politically untenable:
08/27 08/26
Mkt Current Prev US$Change
Japan 84.65 84.65 unch Yen
EC 1.2725 1.2734 + .09 Cents
Switz 1.0240 1.0305 - .65 Centimes
UK 1.5515 1.5580 + .65 Pence
C$ 1.0585 1.0560 + .25 Cents
A$ .8875 .8875 unch Cents
NZ$ .7045 .7045 unch Cents
Mexico 13.09 12.95 + .14 Centavos
Brazil 1.7620 1.7630 - .10 Centavos
Russia 30.70 30.77 - .07 Rubles
China 6.8001 6.8041 - .40 Renminbi
India 46.82 46.77 + .05 Rupees
Prices "marked" at 7:15 GMT
Moving on, late yesterday the Federal Reserve Bank of
St. Louis… the keeper of the Monetarist flame amongst
the regional Federal Reserve Banks… reported yet
again that its adjusted Monetary Base has gone
nowhere. Flat-lining like that electrocardiogram of a
dead man, the adjusted monetary base is now
precisely where it was last October and precisely
where it was last January and precisely where it was in
May, and June and July and last week and the week
before… Well, everyone should by not get out picture.
Growth in this most important monetary aggregate…
the one from which all other aggregates arise… is non-
existent, and this we find terribly disconcerting. The
base should be growing by the amount needed to
“feed” population growth + a factor to adjust for hoped-
for, non-inflationary economic growth. By holding the
base absolutely steady, the Fed is erring toward
deflation and this it should not be doing. Worse, and
yet again, the currency component of M1 continues to
rise and since October of last year has risen by
approximately $30 billion. In other words, given that
currency is an important part of the adjusted monetary
base, had it not been for the growth in cash the base
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
stored in lock boxes around the world. Cash is
deflation defined. This we find terribly disconcerting;
but we’ve found it so for months and crying “Wolf!”
becomes tiring after a while.
COMMODITY PRICES ARE
STRONGER with the average of
Reuters/Jefferies and DJ/UBS commodity indices
rising 1.0%. The grains are strong; the precious
metals… especially again the “white/industrial”
metals… are strong; the base metals are tenuously
stronger, and only the “breakfast softs”…. Sugar and
cocoa… are weaker. Coffee, however, is, as we like
our coffee in the morning, strong too.
Concerning the grains, which were obviously very
strong yesterday and which remain very strong this
morning, the news is of material exports of corn which
are changing the supple/demand equation as we write.
Our friend, Richard Brock, wrote yesterday that
Corn export sales for the week ended Aug. 19
came in at 68.4 million bushels, topping trade
expectations for sales of 25.5-57 million
bushels. U.S. corn export sales for next
marketing year have now reached 351.5
million bushels which is 23.6% ahead of last
year's level. The strong early sales pace is
boosting speculation that 2010-11 corn exports
will surpass USDA's current estimate of 2.050
billion bushels, which represents just a 3.8%
increase over projected 2009-10 exports of
1.975 billion bushels. The weekly export sales
report showed strong buying from both Japan
and Egypt.
The strong recent corn export sales pace,
combined with continued doubts about
Midwest corn yields are boosting concerns that
the U.S. corn supply/demand situation could
be quite tight by the end of 2010-11.
We could not agree more, and the technical situation is
becoming even more certainly bullish than are the
fundamentals. Hence we again recommend turning to
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
longer of sooner rather than later… for some while
more.
Turning to wheat, which led the way higher on the
news out of Russia in recent weeks, the bears are
hoping to turn prices down and hope further that the
recent weakness is more than a mere correction. They
wheat bears note, properly, that US domestic and
global wheat inventories are still quite high. They are
right, of course. Global wheat inventories are high, but
the demand is high too and the wheat crops are not
growing larger, they are growing smaller. The
USDA Attaché in Moscow yesterday estimated the
Russian '10/11 grain output at 62 million metric tonnes
down 36% from a year ago and the '10/11 wheat crop
at 41 million metric tonnes. The attaché said, however,
that the Russian may still export 5 million metric tonnes
of grain this year, including 4 MT of wheat in '10/11.
That is manifestly bearish news. Then, rather
confusingly, the attaché went on to say that Russia
may import 2.4 million metric tonnes of grain in '10/11
mostly from the Ukraine and Customs Union countries.
We ask, “Which is it? Will Russia import or export
grain, net.” The answer is that Russia will export some
small sums of grain, but in the past it exported large
sums instead. Further, if there is not adequate rain
soon in Russia, the next winter wheat crop is in danger
of not being planted at all, or if planted, planted in dust.
Having said that, we must add one caveat: Our long
standing subscribers from a decade or two past… and
there are large number who’ve been with us that long
and to them we say “Thanks! Truly… thanks!”… will
remember the wise comments from an old and now
long deceased mentor, Mr. Melvin Ford of Lynchburg
Milling Company, regarding wheat. Once, many years
ago when it appeared that the US winter wheat crop
was going to blow away in spring winds after the crop
had been planted in virtual dust, Mr. Ford presciently
said, “Dennis, you must always remember, wheat is a
weed. You can _iss on it and it will still grow.” That
year the US had a then record crop. It is worth
remembering when one gets carried bullishly away
with promises of small winter wheat production
numbers:
08/27 08/26
Gold 1235.6 1239.7 - 4.10
Silver 18.95 18.96 - .01
Pallad 500.00 496.00 + 4.00
 Plat 1532.0 1533.0 - 1.00
GSR 65.25 65.40 - .15
Reuters 264.04 261.80 + 0.9%
DJUBS 130.15 128.78 + 1.1%
ENERGY PRICES ARE HIGHER, BUT
ONLY MARGINALLY SO as both nat-gas
and crude have bounced from the lows made three
days ago in New York dealing. However, what has
caught our eye this morning is the massive increase in
the contango in WTI and the material rise in the price
of Brent relative to nearby WTI. Firstly, the average
WTI/Brent contango has widened materially since
yesterday, and the trend toward every wider contangos
continues as crude is clearly abundant above ground.
The Oct’10/”red” Oct’11 average contango for both
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
contango was $5.42, with nearby futures higher than
where there are presently. Two weeks ago this same
average contango was $5.14. A month ago it was
$4.39! Crude is bidding aggressively…
aggressively… for storage when and where it can be
found.
The weekly EIA nat-gas inventory figure was
marginally above expectations as 40 Bcf of gas moved
into storage. The pre-report consensus was that 38
Bcf moved in. The actual figure was bearish, but only
ever-so-slightly so and the response to the report was
demonstrably bearish, reflecting upon the tenuous
nature of the nat-gas bulls rather than upon the figure
itself. The bulls wanted… needed… were pleading for
a much lower number than the pre-report guess-timate.
When they got something even as slightly larger than
what had been hoped for, they threw up their hands
and sold themselves out. Panic liquidation is the mode
and sadly more likely shall follow as the temperatures
along much of the east coast are now suddenly well
below seasonal norms, driving electricity demand lower
and thus driving nat-gas demand lower still..
SHARE PRICES ARE JUST A BIT
LOWER, for having changed not-at-all yesterday
from Wednesday, they’ve fallen only by the barest of
margins this morning from yesterday. The global
very
markets are marking time until Dr. Bernanke and Mr.
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.
Finally, three Canadian citizens were arrested
yesterday by the Royal Canadian Mounted Police and
charged with supporting terrorism. The RCMP said
that the three who were arrested “posed a real and
serious threat to the citizens of the national capital
region and Canada’s national security.” Two of the
men were from Ottawa; the third lived in London,
Ontario. Oh, and you’ll never guess… all are Muslims!
Like the Prefect of Police in Casablanca, “We are
shocked; shocked” that Muslims are at the centre of
Canadian terrorist plots? Who knew? At least this
group of Muslim terrorists was not planning to kidnap
the Prime Minister and execute him as the last group of
Muslim terrorists in Canada had been planning. This
group apparently only planned to blow up the
Parliament building or some other such nonsense.
This has to make you laugh. Greek boat owners
declared less income than the cost of running their
boats! They were cheating on every front and it was
obviously to one and all that they were doing exactly
that. Deficits matter and the deficit has forced
government there to take action against the tax
cheaters and avoiders that had become endemic.
Whatever floats your boat, indeed.
IT’S ARCHITECTURALLY SOUND:
We look for interesting bits of information that seem to
escape the other economists/traders/investors on The
Street, and one that we’ve become enamoured with
regarding building is the Architecture Billings Index
compiled by the American Institute of Architects. Like
the NAPM report, this index moves from 0 to +100, and
when the index is below 50 billings are decreasing;
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
WHATEVER FLOATS YOUR BOAT:
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
ARE COMING: We don’t like to lift whole clothe
articles because we fell lazy when we do, but this time
we had no choice but to do so for this is so truly spot-
on that it could only be lifted whole clothe. Though very
tongue-in-cheek, there is real wisdom here. Would that
the Left understood the lunacy of their philosophies:
This Is Why There Are No
Jobs in America
By Porter Stansberry
Saturday, August 21, 2010
I'd like to make you a business offer.
Seriously. This is a real offer. In fact, you really can't
turn me down, as you'll come to understand in a
moment…
Here's the deal. You're going to start a business or
expand the one you've got now. It doesn't really matter
what you do or what you're going to do. I'll partner with
you no matter what business you're in – as long as it's
legal.
But I can't give you any capital – you have to come up
with that on your own. I won't give you any labor –
that's definitely up to you. What I will do, however, is
demand you follow all sorts of rules about what
products and services you can offer, how much (and
how often) you pay your employees, and where and
when you're allowed to operate your business. That's
my role in the affair: to tell you what to do.
Now in return for my rules, I'm going to take roughly
half of whatever you make in the business each year.
Half seems fair, doesn't it? I think so. Of course, that's
half of your profits.
You're also going to have to pay me about 12% of
whatever you decide to pay your employees because
you've got to cover my expenses for promulgating all of
the rules about who you can employ, when, where, and
how. Come on, you're my partner. It's only "fair."
Now… after you've put your hard-earned savings at
risk to start this business, and after you've worked hard
at it for a few decades (paying me my 50% or a bit
more along the way each year), you might decide
you'd like to cash out – to finally live the good life.
Whether or not this is "fair" – some people never can
afford to retire – is a different argument. As your
partner, I'm happy for you to sell whenever you'd like…
because our agreement says, if you sell, you have to
pay me an additional 20% of whatever the capitalized
value of the business is at that time.
I know… I know… you put up all the original capital.
You took all the risks. You put in all of the labor. That's
all true. But I've done my part, too. I've collected 50%
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.
Oh… and one more thing…
Even after you've sold the business and paid all of my
fees… I'd recommend buying lots of life insurance. You
see, even after you've been retired for years, when you
die, you'll have to pay me 50% of whatever your estate
is worth.
After all, I've got lots of partners and not all of them are
as successful as you and your family. We don't think
it's "fair" for your kids to have such a big advantage.
But if you buy enough life insurance, you can finance
this expense for your children.
All in all, if you're a very successful entrepreneur… if
you're one of the rare, lucky, and hard-working people
who can create a new company, employ lots of people,
and satisfy the public… you'll end up paying me more
than 75% of your income over your life. Thanks so
much.
I'm sure you'll think my offer is reasonable and happily
partner with me… but it doesn't really matter how you
feel about it because if you ever try to stiff me – or
cheat me on any of my fees or rules – I'll break down
your door in the middle of the night, threaten you and
your family with heavy, automatic weapons, and throw
you in jail.
That's how civil society is supposed to work, right? This
is America, isn't it? That's the offer America gives its
entrepreneurs. And the idiots in Washington wonder
why there are no new jobs…
Regards,
Porter Stansberry
Mr. Stansberry is rather well known on the investment
speaking circuit. He’s a wise man; a good man and in
this instance an imminently insightful man. Job
growth? It is none existent and so long as this
Administration remains in power intact it will remain so.
That’s fair, isn’t it?

RECOMMENDATIONS
1. Long of Three and one half Units of the
C$ and Four and one half of the
Aussie$/short of Eight Units of the EUR:
Thirty four weeks ago we bought the C$ and sold the EUR at 1.5875.
Thirty three weeks ago we added to the trade at or near 1.5100, and
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
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
th
yesterday… Tuesday, August 24 . It is this morning .6976.
2. Long of One and One half Units of Gold:
One Unit vs. the EUR and the remaining
half vs. the British Pound Sterling: This is our
“insurance” gold position… our hedge against disaster.
3. Long of Two Units of Dec’11 Corn: Given
the current prices it is reasonable to assume that next year American
farmers will grow wheat and double crop soybeans behind them, and
shall thus curtail corn planting materially. Thus, we bought new crop
December ’11 corn at an average of approximately $4.31/bushel
th
some while ago and we added to it on Friday, August 13 and we
th
added to it again Wednesday, August 18 . Our stop remains at
$4.08… a risk of 5% on the original position.
If new crop Dec ’11 corn were to close above $4.47 today, we’ll
add another unit to the trade. If we are in the final moments of
trade and it appears that that level shall be breeched, act.
The following is not a recommendation, a solicitation or an offer to
sell the securities and reflects publicly available pricing information
provided for informational purposes only. The Gartman Letter L.C.
serves as a sub adviser to the products mentioned below. Investors
in the CIBC Gartman Global Allocation Deposit Notes should go to:
https://www.cibcppn.com/ScreensCA/CANProductUnderlyings.aspx?
ProductID=221&NumFixings=2
Existing investors in HAG should go to:
http://204.225.175.211/betapro/fundprofile_hap.aspx?f=HAG
The following positions are “indications” only of what we hold in our
ETF in Canada, the Horizon’s AlphaPro Gartman Fund, at the end of
the previous trading day. We reserve the right to change our
opinions at a moment’s notice and we reserve the right to take
positions opposite of what maybe in our “Notes” and ETF from
time to time as market conditions warrant:
Long: We own “stuff” and the movers of “stuff.” We have
positions in an iron ore miner, a coal company, and a railroad
company. Yesterday, we exited our position in the steel company.
We also own an “Asian” short term government bond fund, the C$,
Swiss Francs, a small “insurance” position in gold, a crude oil trust, a
nat gas trust, and a North American midstream energy company.
Lastly, we own a basket of ag related stocks and ETFs including four
grain and fertilizer companies as well as an ETF that tracks
agricultural commodity prices generally
Short: We are short the Euro, we own a double inverse broad
equity index ETF to hedge the positions mentioned above, and are
short a southeastern regional bank as well as a global investment
bank. Yesterday we exited our position in the restaurant stock.
The CIBC Gartman Global Allocation Notes portfolio for
August is as follows:
Long: 20% Canadian Dollars; 10% Australian Dollars; 5% gold;,
10% silver; 10% corn; 10% sugar; 5% S&P 500 Index; 5% US Ten
year notes
Short: 15% Euros; 10% British Pound Sterling
Horizons AlphaPro Gartman Fund (TSX:HAG): Yesterday’s
Closing Price on the TSX: $8.74 vs. $8.73 Yesterday’s Closing
NAV: $8.79 vs. $8.79
CIBC Gartman Global Allocation Deposit Notes Series 1-4; The
Gartman Index: 115.20 vs. 114.85 previously. The Gartman Index
II: 92.49 vs. 92.22 previously
Good luck and good trading, Dennis Gartman
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