Gartman: We're Long Tanker Stocks And Gold, Short U.S. Treasuries

Dennis Gartman discussed in Tuesday's edition of "The Gartman Letter" why he views the tanker industry and gold favorably while still maintaining a short position on U.S. Treasuries.

Iran Deal To Boost Tankers

Gartman said that the U.S.-backed deal with Iran will bring "huge" new sums of crude oil into the market, which bodes well for Iran as the country "needs money… badly."

Gartman continued that with 40 to 50 fully loaded tankers sitting in the Persian Gulf and Indian Ocean awaiting word that oil sales can begin, there will be an overhead supply. In addition, Saudi Arabia won't allow "their enemies" Iran to "forge into its market share."

"We remain long ‘tanker' stocks predominately, having been long of one in particular and having added a second late last week," Gartman disclosed without naming specific companies.

Related Link: The Stronger Dollar Is Bringing Gold Down

Gold Bought In EUR Still Higher On The Year

Discussing gold, Gartman stated that despite Monday's "massive" declines, investors who purchased the commodity in euros are still profitable for the year by around 2.01 percent. On the other hand, gold in yen-denominated terms, is down 4.73 percent year-to-date, but gold in U.S. dollar terms is down a "very real and very severe" 6.94 percent.

Nevertheless, Gartman wrote that "everyone must own some gold" in their portfolio as it is still a hedge against "political chaos" and/or inflation (and even against deflation as was the case in the 1930s).

The letter suggested that the "preferred method" of gaining exposure to gold is to own GEUR and/or GYEN on the NYSE.

Short U.S. 10-Year Note Future

Finally, Gartman stated that he sold U.S. Notes on Thursday July 16 at or near to 126 1/8th. He added that if the 125 ½ level is taken out to the downside, he will add to the trade. For now, his "defense" point is set up at 127 3/4 , with a target to the downside of 120-121.