soaring in value.

Too, the Yen/EUR cross, which has

been and which is now and which shall likely continue
to be a very excellent coincident indicator of the health
or non-health of the global capital markets and the
urgency or non-urgency on the part of investors to take
on risk, has moved quite sharply in the EURs favour,
suggesting to us that the strength in the stock markets,
at least temporarily, has some staying power.

Thursday,June3rd,2010 The Yens weakness can beand probably should
DennisGartman:Editor/Publisher be directly attributed to the fact that Mr. Naoto Kan,
Phone7572389346Fax7572389546 the Finance Minister under Mr. Hatoyamas Prime
Emaildennis@thegartmanletter.com Ministership, is very likely to become the next Prime
LondonSales:DonaldBerman,AlberdonInternational
Minister, unless something truly unusual were to
Phone:01144(0)7986221110 happen in the next twenty four hours. The Democratic
Party will hold a caucus tomorrow to decide on the new
party leader, and as is the case, that leader will almost
certainly become the new
THES&PANDITS200 Prime Minister. Thus far, only
DAYMOVING Mr. Kan has officially tossed
AVERAGE:Yes,themarket his hat into the ring, although
wasstrongyesterday,butnote
onceagainthatitremains there may be others, including
belowits200daymoving Mr. Mr. Shinji Tarutoko, the
averageandthatthetrend
Chairman of the Diets
lineonedrawsfromthelow
lastMarchhasalsobeen Environment Committee and
brokendefinitively. Mr. Seiji Maehara. There is
talk that Mr. Katsuya Okada too might choose to run
for the leadership position, but Mr. Kan has already
OVERNIGHTNEWS: tried to foil that possibility by asking Mr. Okada for his
support. Another possible candidate for the post, Mr.
THE YEN AND THE DOLLAR ARE Yukio Edano, has taken his name out of the running.
WEAK THIS MORNING and they are
The central figure in all of this shall be Mr. Ozawa.
materially so relative to a number of major and minor Ozawa has been at the centre of Japanese politics for
currencies. Most notably, the non-US dollars are very decades, having learned the craft of back-room
strong, with the Canadian, Aussie and Kiwi dollars politicking from the old LDP master of that craft, Shin
Kanemaru. Having been unable to become Prime
Minister himself, Ozawa has been the behind-the-
scenes king maker in the short lived Hatoyama
Administration, and his support is either embraced or
shunned by the factions within the Democratic Party.
Mr. Kan embraces Mr. Ozawa tenuously; Mr.
Tautoko shuns him.

Mr. Kan, it is widely understood, wants a much weaker

Japanese Yen and has said quite publically that Japan
needs a Yen beyond even 95 Yen/dollar. Further, Mr.


Kan has been an outspoken supporter of even more 450 thousand yet again. Well not argue with that
aggressive easing policies by the Bank of Japan, and thesis.
should he become the party leader and then the Prime
Minister, we can expect him to name a Finance Well also see Factory Orders for April, which is rather
Minister that shares his ideas. a long look backward given that this is June, but the
trend for orders has been inexorably upward since
Going back into the past year or so, the trend has been making their lows back in the first quarter of 09. The
for the Yen to strengthen, and so long as the Streets consensus is that orders rose another 1.8%,
Yen/dollar rate remains below 95 the last point of US with the range of guess-timates uncommonly wide
dollar resistance made in late March and again in early from +1.5% to +3.5%.
April we have to believe that the trend is still toward
a strong Yen, a weak US dollar. But if Mr. Kan We are more interested in the Non-Manufacturing ISM
assumes the Prime Ministership, we suspect that that index that is due out later today. This Index is for May,
trend can be and shall be readily broken. Time only so it is far more timely than Factory Orders, and since
shall tell of course, but the fundamentals will be shifting making its low at 36 back in November of 08, the
substantively enough under Mr. Kan to allow that to Index has been steadily moving higher, having risen
take place relatively swiftly: above the all-important 50 level last autumn. In April
the index stood at 55 (55.4 really, but as is our wont
06/03 06/02 round numbers suffice for our purposes), unchanged
Mkt Current Prev US$Change
from March. The consensus has Mays figure rising to
Japan 92.55 91.60 + .95 Yen
EC 1.2300 1.2213 - .87 Cents 56. Were fine with that.
Switz 1.1510 1.1560 - .50 Centimes
UK 1.4695 1.4670 - .25 Pence Finally, Eric Rosengren, the President of the Federal
C$ 1.0355 1.0540 - 1.85 Cents
A$ .8510 .8305 - 2.05 Cents Reserve Bank of Boston and Mr. Thomas Hoenig, the
NZ$ .6895 .6740 - 1.55 Cents President of the Federal Reserve Bank of Kansas City,
Mexico 12.76 12.95 - .19 Centavos speak today at different times and different venues, but
Brazil 1.8170 1.8480 - 2.10 Centavos
we shall pay a bit more heed to what they have to say
Russia 31.16 31.09 + .07 Rubles
China 6.8313 6.8283 + .30 Renminbi than we might otherwise for both men are voting
India 46.60 47.21 - .61 Rupees members of the FOMC this year. They serve in that
Prices "marked" at 09:15 GMT capacity in rota with Dr. Pianalto of the Fed Cleveland
and James Bullard of the Federal Reserve Bank of St.
Today is Thursday and that means weekly jobless
Louis.
claims once again. Claims have hovered at or near the
450 thousand level, causing us, and others, a great
deal of concern several weeks ago when they bounded COMMODITIES PRICES ARE BIT
toward 470 thousand, but settling back to 460 WEAKER with energy leading the way higher, as
thousand last week. Like a weak the US dollar is a bit weaker and
stock that needs to break to new Gold In Yen Terms
as the dollar/commodities
lows to keep the bearish trend correlation is holding this
intact, claims need to break morning in energy terms.
down below 440-450 thousand However, the grains continue to
soon in order to prove the thesis weaken, as do a number of
that the US economy is getting agricultural commodities, and
stronger. The consensus is that the strength in energy is not
that wont happen today, with substantive enough to trump the
The Street looking for and very
likely to get something close to


weakness in the grain market. Silver 18.37 18.28 + .09

Pallad 458.00 455.00 + 2.00
Plat 1558.0 1542.0 +15.00
Sounding far too consistent, and knowing that some of
GSR 66.55 66.70 - .15
our clients around the world would like us to be more Reuters 252.39 254.80 - 1.0%
active and more divergent in our position taking, we DJUBS 123.96. 125.36 - 1.1%
remain bullish of gold in non-US dollar terms. This has
Turning as we do to the grains at this time, we know
served us well over the past many months and we trust
that the crops in the ground are off to nothing short of
it shall continue to do so in the months and weeks
truly fantastic start to the growing season, and if the
ahead. We were, however, stopped out of our long
weather holds even close to the excellent weather we
position in gold in Sterling terms yesterday, having
have had this far we are looking at bin-busting, bumper
broken even on the trade and unwilling to allow a nice
crops across the board. If however is the very
profit to devolve into even a modest loss. We remain
operative word here, for history shows that the early
long of gold in EUR terms, however, and as we write
part of the crop growing season can be excellent and
gold in EUR terms is trading just under the
the latter half can go just as fantastically awry. Such is
psychologically important 1000 level. It is 994 to be
the nature of agriculture and crop growing.
as precise as possible. We shall sit tight and do
nothing more. July 4th is always the most important pivot point for the
year. Remember if you will how grain and commodity
However, gold in Yen terms is now hard upon our prices turned south with vengeance two years ago as
radar screen, with Mr. Kan the likely next Prime problems getting the crops into the ground were
Minister. Nothing his antipathy toward a strong Yen, alleviated and good weather weighed heavily upon
and noting further his propensity as Prime Minister to prices thereafter. In opposition, our good friend,
push the bank of Japan toward even more aggressive Charles Sernatinger of Fortis in Chicago reminded us
easing, we can readily imagine gold/Yen breaking out yesterday that the crop in 83 began the year as it did
to the upside. Weve a chart of gold/Yen this page this year, in near perfect conditions, with prices moving
above [Ed. Note: This chart, in order to be understood steadily lower until scorching heat began in early
properly, needs to have the July and continued on into late
decimal point shifted two places August, sending corn, bean and
Corn In The wheat prices skyward. As the
to the right.] going back for the
Summer of 83 chart weve included here this
past three years and it is clear
morning, courtesy of Charlie,
that the trend is upward and that
shows all too clearly, corn made
corrections along the way are to
its low near $2.60/bushel in
have been bought; that is, gold is
early July and then raced
to have been bought and the Yen
skyward to $3.80/bushel by mid-
sold in order to create gold in Yen
August, before turning lower
terms. As we write, gold in Yen
once again.
terms is trading 112,888/oz. and under Mr. Kan, who
wants the Yen/dollar to trade upward toward 95 and 46% in a month and one half was an incredible rise
beyond, we can readily imagine gold/Yen trading to that caught everyone off guard. We are not suggesting
125,000 and beyond, for that shall only require gold in that that shall happen again this year, for the odds
US dollar terms trading to 1300 and the Yen/dollar at continue to favour the trend in place, but this is an El
95. Yen at par and gold at $1300/oz would give us a Nino year and already the temperatures have been
gold/Yen rate of 130,000/oz: high and are rising. The ground moisture levels are
excellent at the moment and the crops are probably in
06/02 06/01 very good shape in that regard through the end of this
Gold 1222.7 1219.4 + 2.30


month but what if? It is always wise to ask and be away for the privilege of having diversification. To the
prepared for the "what ifs" that plague all trading. short hedger this is nirvana; to the long side speculator
this is painful indeed.
Finally, as an outside Director of the Kansas City
Board of Trade, we are proud to report that volume in The DOE inventories will be out later today, delayed of
May was the second largest in the Exchanges history course for one day because of the Memorial Day
for that month, second only to the volumes done in holiday. The API report last evening was modestly
May of 06 and was nearly 1/3rd larger than the volume supportive of energy prices with crude inventories
done a year ago. Open interest too continues to falling 1.4 million barrels; Gasoline inventories fell
expand and for the year-to-date, total volume is also but only 1.0 million barrels, while distillate
running 23.2% ahead of last year at this time. . inventories rose 0.9. Thus the aggregate fell 1.5 million
barrels. Refinery runs were strong and crude imports
ENERGY PRICES ARE SHARPLY were weak. The increase in distillates was about as
HIGHER and that is quite evident from the price expected and very near the five year average for this
week. The most bullish aspect of the report was the cut
matrix of WTI crude below. But what is also quite
in gasoline inventories given that the five year average
evident is how sharply has the contango widened once
for this week is for inventories to remain essentially
again, doing so even as prices rise. This is not how a
unchanged. Futures traded higher on the news, but
bull market should act, for in a true demand driven
once again the API numbers are of very limited use
bull market the contango should narrow and should
when trying to guess-timate the DOE figures.
move toward backwardation. Instead, the spot market
price is rising but the contango is going out as crude JulyWTI up 177 74.20-25
bids for storage. Something is terribly awry in the crude AugWTI up 209 75.84-89
oil market then, and under no circumstance would we SepWTI up 235 77.10-15
OctWTI up 245 78.01-06
follow this market as a buyer, but rather it shall be our NovWTI up 249 78.79-84
strong propensity to sell strength rather than buying DecWTI up 250 79.50-55
weakness. We have learned our lessons regarding Jan WTI up 252 80.02-07
OPEC Basket $70.48 05/27
contango and backwardation over the years and we
Henry Hub Nat-gas $4.11
are not about to forget those lessons now.
Regarding the oil spill in the Gulf, only an hour or so
If we have the opportunity in the next several days to ago British Petroleum reported that its latest attempts
sell the nearby WTI futures at or near $77.50-$78.00 to stem the leak have again failed. The pipe they had
we almost certainly shall be doing so; however, at the hoped to cut cleanly and then cap has proven to be a
moment that seems like a rather long way to the
more formidable foe than had been feared, with the
upside and shall require some fundamental news that
saw the company had been using via remote control
we are, at the moment, not aware is on the horizon.
became stuck. Now the company is forced to shear
We can hope, however.
the pipe with a giant garden-like tool that will leave the
Further, we stand in awe of the sums of money that the cut rather unclean and make capping it all the more
long only funds shall be losing in the crude oil markets problematic. With each passing day, BPs future
over the weeks and months ahead as they continually becomes dimmer and dimmer and dimmer and
pay up to own deferred futures that must eventually dimmer.
make their way to the spot price. At the moment,
ownership of August WTI crude will cost the long only STOCKS HAVE GONE BALLASTIC to
funds 2.25% more than the nearby July. Over the
the upside in the past twenty four hours, with our Intl
course of one year, rolling that over again and again
Index rising 115 points or 1.6%, catching us
and again is huge expense, which the pension funds,
completely off guard. The market here in the US was
endowments and the like seem idiotically willing to pay


strong early in the session, but it began to rise skyward we must therefore trade in bear market manners,
immediately following the Presidents comments selling high-beta stocks, with low dividends while
regarding US energy independence and his focus upon buying, or hedging those positions, with low beta
domestic on-shore availabilities, including the now stocks paying high dividends.
more famous shale plays in the Midwest and the
In light of yesterdays and todays massive strength,
upper Midwest. The nat-gas companies tore to the
our comments above might appear to many to be
upside, and in the process carried the rest of the
specious at best. However, we draw everyones
market higher in their wake.
attention to the chart at the upper left of p.1, sent to us
However, we do pay heed to the 200 day moving by our good friend Mr. David Wienke of Bache in
averages for we have come, over the years, to see Chicago, noting that even with yesterdays strength the
these broad moving averages as the indicators of S&P remains below its 200 day moving average. That,
trend. That is, if the 200 day moving average is we think, is worthy of note:
trending upward, weakness is to be bought; strength is
Dow Indus up 226 10,250
not to be sold. Conversely, if the 200 day moving
CanSP/TS up 209 11,781
average is trending downward, strength is to be sold, FTSE down 12 5,151
weakness is not to be bought. The difficulties with that CAC down 2 3,501
DAX unch 5,981
tendency come at those turning points not always as
NIKKEI up 311!!! 9,914
readily see-able as one might hope they would be at HangSeng up 420 19,830
the time when the moving average is still trending in AusSP/AX up 100!! 4,486
Shanghai up 32 2,562
one direction by the index itself, or the stock itself, is Brazil up 1101 62,942
moving contrary. Those, as Thomas Paine might have TGL INDEX up 1.6% 7,339
said, are the times that try mens souls. We note
then that the NASDAQs 200 day moving average is ON THE POLITICAL FRONT just on a lark
still moving higher, but the Index has been closing hard we went to Google to look at the various tenures in
upon, and even below that moving average for the past office of Prime Ministers and Presidents in the
nine or ten trading sessions. Souls are being put to industrialised world, believing that the relative
test. shortness of the Japanese Prime Ministers tenures in
office since the end of World War II. Since the end of
The S&Ps 200 day moving average is also still the war, Japan has had 33 Prime Ministers (some of
trending upward but the Index itself has closed below which became Prime Minister again, and which we
that moving average for the last nine consecutive therefore counted twice); the US has had 12
sessions. Clearly this is not a one-off event, and just as Presidents during the same period; the British 15
clearly this portends a very clear trend change. And Prime Ministers (again, some were duplicated); the
we might say the very same thing for the DJIA, which Canadians a far quieter political crowd have had
like the S&P has closed below its 200 day moving only 13 Prime Ministers during that period. The
average for the last nine days in a row, and where the winner is Italy. Italy has had 41 Prime Ministers
moving average itself is only a week or so away from during that same period of time. In average duration in
turning lower. office, Italys Prime Ministers last only 18.8 months;
Japans last 23.3 months; British Prime Ministers last
These broad moving averages are like air craft 51.3 months; American Presidents last 64.2 months
carriers: they move in one direction for long periods of and Canadas patient Prime Ministers last an average
time and they change direction infrequently given the of 59.2 months.
inertia of moment that must be overcome to change
Interestingly, and we can of course be wrong on this
their direction. We are, we fear, in a bear market, and
and we are open to being corrected, the shortest


tenure in office was by Mr. Fanfani as Italys Prime boarded any of the ships, for whatever reason the IDF
Minister from and we are not making this up chose the path it chose.
January 18th, 1954 until February 8th of that same year.
20 days in office, but we guess it felt like a lifetime. The question is Why did Israel take this strange line of
Interestingly, Mr. Fanfani was hardly any more action? Mr. Ronen Bergman, in yesterdays Wall
successful when he became Prime Minister again 28 Street Journal had a most interesting take on the
years later, holding office from December 1st, 1982 question, wondering in print if the nations leaders and
until August 4th, 1983. Two lifetimes this time! the nation itself were not suffering from a form of battle
fatigue that now permeates all Israeli politics. He
Looking back on Mr. Hatoyama decision to stand said and we think presciently that
down, no one should have been surprised by the fact
that he did, although we might have been surprised by Israels fatigue and deep sense of ostracism is,
to say the least, unhealthy. It would be
the swiftness with which he abandoned office. unhealthy for any country at the best of times.
However, since he took office, his popularity ratings But it is particularly troubling when the country
have plunged while his disapproval ratings rose in question is at perpetual war and when it is
repeatedly threatened with annihilation by the
steadfastly. He took office with a support rating of 78% leader of a country who is actively pursuing
back in September of last year while his disapproval nuclear weapons. And, of course, it is
rating was 18%; 4% were undecided. His profoundly disturbing when the fatigued and
isolated country itself has the means to strike
approval/disapproval ratings crossed each other at the
pre-emptively and punishingly at its enemies,
40% level (with a rather large number of Japanese including in ways from which, realistically there
then undecided) in January of this year. At the end of may be no return.
May, in the days before his resignation, 78% of the We did not come away from Mr. Bergmans article
voters disapproved of Mr. Hatoyamas job as Prime
feeling warm, fuzzy and bullish of equities; we did
Minister, while 20% approved. We should remember
come away from the article bullish of gold however.
that this is not the lowest level to which a Japanese
Prime Ministers support had fallen. We believe that Finally, the USS George Washington, one of the US
that honour belongs to Mr. Mori who actually aircraft carriers, will join with S. Korean naval forces in
achieved hat sized support levels of only 8.6%. Mr. a show of strength off the coast of North and South
Mori, as we recall, remained in Korea next week. The ships
power for nineteen months about attending the George Washington will
twice as long as Mr. Hatoyama. also take place in the naval exercise,

Regarding more serious concerns, and that is in addition to the

the situation that developed earlier submarine warfare exercise that shall
this week off the coast of Israel is of take place in the near future. Clearly
greater and greater concern to us the US and South Korea aim to prove
here at TGL with each passing day, their military might and to prove the
for we are still astonished that Israel idiocy that any North Korean attack
allowed itself to be put into the upon the South would be.
position it found itself in a position from which it
This is not the first time that the George Washington
could not emerge with a public relations victory
has taken part in naval exercises with South Korea off
although clearly it emerged with a military victory and
its actions were, in our opinion, fully defensible, for of the Norths shores. Indeed, this magnificent carrier
what if the ships coming to the Gaza were carrying took part in exercises last year, but this year, given the
military equipment? Yes, Israels covert operations recent sinking of South Koreas Cheonan the exercise
and commandos could have stopped the ships from takes on greater significance.
even getting to the port in some fashion without having


GENERAL COMMENTS certainly expand in countries around the world where

ON THE CAPITAL MARKETS oil can be found and the Greens are not nearly as
powerful as they are here. If the problems in the Gulf
are supportive of anything they are supportive of the
OK, THIS MAY BE COMMODITY
Canadian tar sands; they are supportive of Petrobras
INFORMATION, BUT: We thought it might operations off the coast of Brazil; they are supportive of
be interesting to know just how substantive have the oil industry in Nigeria and they should be
become the acres planted to genetically modified crops supportive of nuclear power plants. We thought wed
around the world. The term GMO still strikes fear into take a look this morning at the latter, comparing where
far too many people who want to see any and all sorts in the world nuclear power plants are being built or are
of Frankenstein-ish effects emanating from GMO being considered. For example there are more
crops. We do not share those same concerns, but we nuclear power facilities operating here in the US than
are open to discussions on the topic, although rabid in any other nation in the world104 at present.
enviro-radicals, we hope, shall refrain from sending us However, weve only 1 plant under construction at the
their thoughts. moment and a mere 8 that are planned. Construction
has effectively all but stopped here in the US on
The point here this morning is that since the mid-90s nuclear power. Interestingly, in Canada there are 18
when GMO crops really began to be planted in earnest plants operating, but there are no plants under
theyve earned their place in the worlds fields. Back in construction and none being planned.
96, in the Industrialised nations there were effectively
zero acres planted, by 2001 there were approximately In Europe, where nuclear power produces a great deal
100 million acres planted; by 06 that was up to 148 of the electricity far more than is produced here in
million acres and by last year 173 million acres. In the the US there are 19 plants operating in the UK; 17 in
developing world, back in 96 with zero acres planted Germany; 7 in Belgium; 59 in France; 10 in Sweden
that had become 15 million in 01; 100 million in 06 but there are none zero zilch under construction
and just under 150 million by 09. So in other words, anywhere and worse, there are none on the planning
from zero acres planted back in 96, the world now has books! Only in Russia, with 27 plants operating, are
a total of just under 325 million acres. Somehow we do there any plans for more. There, in Russia, they've 10
not see that growing any smaller in the years ahead as nuclear power plants being built and there are 7 more
GMO crops are modified to be more and more disease planned. In the Ukraine, with 15 plants up and running
resistant, or drought resistant or heat resistant or all there are none being considered but at least 2 are now
three. being built.

The world is better fed because of GMO crop science. So where is the growth? In Asia obviously. China
The land grant universities of the world have done has 11 plants operating. It has 26 under construction
yeomans work in creating these plants; improving and it is currently planning for 10 more. Japan has 54
them every year and feeding the world more and more nuclear power plants operating; it has 3 under
abundantly and yet the eco-radicals take them to construction and it is planning for 12 more. The S.
task and want them controlled, if not ended. What Koreans? Theyve 20 nuclear plants operating; they
nonsense. are building 6 at present and theyve 2 being
considered. Finally, the Indians are rushing headlong
ON NUCLEAR POWER AROUND into nuclear power, with 17 plants operating; 6 being
built and 8 being considered. In Asia, the future is
THE WORLD: The situation in the Gulf is always being considered, and in this instance it is
obviously going to be deleterious to the entire off-shore being considered properly. Here in The West, as Borat
oil drilling industry here in the US, while it will almost would say, Not so much.


RECOMMENDATIONS Long: We are long of an Asian short term government bond

fund and we still have a small position in Canadian nat-gas trusts
both of which we have been reducing of late. Further, we are still
1. Long of Four Units of the C$ and Three long of the C$; long of gold; long of a property REIT focused upon
rental units; long of silver; and now also of Steven Jobs. We are also
of the Aussie$/short of Five Units of the long a small bit of crude oil.
EUR and Two Units of the Yen: Twenty three
weeks ago we bought the Canadian dollar and we sold the EUR with
Short: We are short Sterling, short of the EUR and short too of
the Yen. Finally, we are short of the broking/trading firm that has
the cross trading 1.5875. Twenty two weeks ago we added to the been in everyones gun-sights of late and which has and will have
trade at or near 1.5100, and fourteen weeks ago we added yet again, Congress on its back perhaps for years and weve gotten
giving us an average price of 1.5250. The cross is trading this shorter of it. We are also short of the maker of Blackberries and we
morning at 1.2740 having traded 1.2875 yesterday and 1.3015 are short of the major search engine. Weve gotten slightly shorter
Friday. Fifteen weeks ago we bought the A$ and we sold the EUR at of both of the latter.
or near .6417. It is this morning .6910 having moved violently against
us last week in unprecedented fashion but now moving for us again. 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
2. Long of Two Units of Gold: Each vs. the L.C. serves as a sub adviser to the products mentioned below.
Investors in the CIBC Gartman Global Allocation Deposit Notes
EUR: On Thursday, May 20th, we returned to our long gold/short should go to:
EUR position. Gold was then trading 961 and 829 respectively.
We added to the position last Friday giving us an average of EUR https://www.cibcppn.com/ScreensCA/CANProductUnderlyings.aspx?
968.6 and Sterling 830.5. We were stopped out of the Gold/Sterling ProductID=221&NumFixings=2
position two day ago at break even, but we are still involved with the
Existing investors in HAG should go to:
gold/EUR trade and are nicely profitable.
http://204.225.175.211/betapro/fundprofile_hap.aspx?f=HAG
We are still long of gold in EUR terms, and we sit tight with that
position, looking to come back to the trade, but in Yen terms In our Canadian Notes we made changes to the portfolio in May but
this time. We wish to buy One Unit of gold in Yen terms upon they were not material, and weve now made changes again for
receipt of this commentary. As we write, gold is trading June. Weve reduced the size of some of the positions and we
113,250. introduced two new positions. Our positions, as of the start of this
month are:

3. Long of One Unit of Low Beta/Dividend Long: 15% gold; 10% silver; 15% Canadian; 10% Australian
Paying Stocks/Short One Unit of High dollars and also long of 5% US Ten year notes and 5% WTI crude.

Beta/Low Dividend Paying stocks: It is time Short: 15% EURs; 15% Pounds sterling; and 10% Yen.
then to buy low beta/high dividend paying equities and to sell high
beta/low dividend paying equities. We shall leave the decision on the Good luck and good trading, Dennis Gartman
equities to be chosen to our clients individual preferences, but food
companies, personal care companies and the like should be bought,
while higher-tech, high-beta, low dividend payers should be sold, or Disclaimer: This publication is protected by U.S. and International Copyright laws. All rights reserved. This
publication is proprietary and intended for the sole use of subscribers. No license is granted to any subscriber,
low end retailers should bought while mall developers and owners except for the subscribers personal use. No part of this publication or its contents may be copied, downloaded,
should be sold. The list is endless and we suspect that there are stored in a retrieval system, further transmitted, or otherwise reproduced, stored, disseminated, transferred, or
used, in any form or by any means, except as permitted under the subscription agreement or with the prior written
ETFs available to put these ideas into effect. This is a bear market permission of The Gartman Letter, L.C. (Gartman). Any further disclosure or use, distribution, dissemination or
position, so we shall trade it accordingly. copying of this publication, message or any attachment is strictly prohibited.

Each reproduction of any part of this publication or its contents must contain notice of Gartmans copyright.
Horizons AlphaPro Gartman Fund (TSX:HAG): Pursuant to U.S. copyright law, damages for liability or infringing a copyright may amount to $30,000 per
Yesterdays Closing Price on the TSX: $9.00 vs. $8.94 infringement and, in the case of willful infringement; the amount may be up to $150,000 per infringement, in addition
Yesterdays Closing NAV: $8.99 vs. $9.02 to the recovery of costs and attorneys fees. Gartman is financial publisher, publishing information about markets,
industries, sectors and investments in which it believes subscribers may be interested. The information in this letter
is not intended to be personalized recommendations to buy, hold or sell investments. Gartman is not permitted to
CIBC Gartman Global Allocation Deposit Notes Series 1-4; offer personalized trading or investment advice to subscribers. The information, statements, views and opinions
The Gartman Index: 115.61 vs. 115.51 previously; and included in this publication are based on sources (both internal and external sources) considered to be reliable, but
The Gartman Index II: 93.29 vs. 93.22 previously. no representation or warranty, express or implied, is made as to their 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
Unofficially for May the NAV of ETF in Canada closed at $8.98 referenced in the publication.
while the unofficial average close for our notes was 103.85.
SUBSCRIBERS SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN RESEARCH BEFORE INVESTING IN
As of last night the NAV of our ETF was up 0.1% and the
ANY INVESTMENTS REFERENCED IN THIS PUBLICATION. INVESTING IN SECURITIES AND OTHER
average price of our notes was up 0.6%. INVESTMENTS, SUCH AS OPTIONS AND FUTURES, IS SPECULATIVE AND CARRIES A HIGH DEGREE OF
RISK. SUBSCRIBERS MAY LOSE MONEY TRADING AND INVESTING IN SUCH INVESTMENTS.

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

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