This brief initial comment  from the Legendary Trader Dennis Gartman.  For subscription information for the 5 page plus Daily Gartman Letter L.C. contact – Tel: 757 238 9346 Fax: 757 238 9546 or E-mail:dennis@thegartmanletter.com HERE to subscribe at his website.

THE YEN AND THE US DOLLAR ARE SOARING AND PANIC IS IN THE AIR as the world is focusing again this morning on the news out of Dubai that Dubai World, the quasi-government controlled “investment” vehicle there has all but declared bankruptcy. Panic is indeed in the air, and well it should be, for this is amongst the worst of news one might conjure up and is one more spear driven into the heart of capitalism by greed and over-extension.  We are seeing capital fleeing to safety
where it can, and we are seeing massive unwinding of short US dollar positions as the “carry trade” that had been wound up is now being unwound under duress.

This unwinding process shall not likely be a one-off, one or two day circumstance.

COMMODITY PRICES  ARE UNDER MATERIAL, EVEN MASSIVE, DURESS EVERYWHERE and no one should be surprised given the severity of the dollar’s advance this morning.  It matters not which commodities one is concerned with… base metals… grains… the “soft” commodities… precious metals… all are weak and all are weakening as the “carry trade” that helped sponsor the rise in these commodities is
now being unwound with a vengeance.

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Mr. Gartman has been in the markets since August of 1974, upon finishing his graduate work from the North Carolina State University. He was an economist for Cotton, Inc. in the early 1970’s analyzing cotton supply/demand in the US textile industry. From there he went to NCNB in Charlotte, N. Carolina where he traded foreign exchange and money market instruments. In 1977, Mr. Gartman became the Chief Financial Futures Analyst for A.G. Becker & Company in Chicago, Illinois. Mr. Gartman was an independent member of the Chicago Board of Trade until 1985, trading in treasury bond, treasury note and GNMA futures contracts. In 1985, Mr. Gartman moved to Virginia to run the futures brokerage operation for the Virginia National Bank, and in 1987 Mr. Gartman began producing The Gartman Letter on a full time basis and continues to do so to this day.

Mr. Gartman has lectured on capital market creation to central banks and finance ministries around the world, and has taught classes for the Federal Reserve Bank’s School for Bank Examiners on derivatives since the early 1990’s. Mr. Gartman makes speeches on global economic and political concerns around the world.