ay

to

1.3675 However,

this it

morning. this is

BALTIMORETODAY; RALEIGHTOMORROW:We
areonourwaytoBaltimorethis morningtospeaktotheBaltimore CFASocietyearlythisafternoon, drivingthereandbacktoday. Tomorrowmorningweshalldrive toRaleighforthequarterly meetingoftheNCState EndowmentCommitteeandwill drivebacktomorrowevening.TGL willbeinitsregularformatand wellhaveWiFiinternetalongthe waysowewillbeincontact regardlessofthetravel.

must be understood that turnaround Tuesday and the EURs bounce has to be seen as temporary in nature; a short covering rally; a

dead-cat bounce and Tuesday,September13th,2011 nothing more. Can we

DennisGartman:Editor/Publisher make the case for the Phone7572389346Fax7572389546 EUR to bounce all the Emaildennis@thegartmanletter.com way back to 1.3750-1.3800 in the course of the next day LondonSales:DonaldBerman,AlberdonInternational or so? Of course we can and likely we shall, but we shall Phone:01144(0)7986221110
make even the stronger case that what modest strength the EUR is able to show is to be sold. Strength in the EUR

GOLDINEUR TERMS:Thelong
termtrendisstillclearly infavourofowning goldinEURorSterling terms,butcanwenot seegoldtradeback downto1300fromits present1335and comparedtolast weeks1375?Of coursewecanand likelyweshall.

henceforth is to be sold; weakness is not to be bought. Much is being made then of the plea that Italy is and has been making of China for the latter to buy the formers bonds. The Chairman of the China Investment Corporation, Mr. Lou Jiwei, was in Rome over the weekend and met with Mr. Tremonti, Italys Finance Minister. Further, representative of Italys finance ministry were themselves in Beijing two weeks ago meeting with representatives of the State Administration of Foreign Exchange with the wonderfully cogent acronym SAFE to press the case for owning Italian debt instruments are part of SAFEs reserve holdings. Further still, Mr. Wu

O VERNI GHTNEWS:

THE

PANIC

IN

EUROPE

HAS

Xiaoling, a member of the National Peoples Congress Standing Committee and a former deputy Governor of the Peoples Bank of China recently said that the panic selling of European debt was ill advised and that China will continue to support Europes measures in maintaining a stable EUR. Finally, Prime Minister Wen himself recently said that China remains confident in Europes future and remains confident too in the future of the EUR. Moving on, we are still somewhat surprised by the rather weak economic data out of Canada late last week for after months in which Canadian employment data was strong and was materially stronger than was that of the US the data turned markedly southward as

SUBSIDEDFOR AT LEAST A DAY

as the EUR has rebounded relative to the US dollar, rising from 1.3500 late last Friday and early in Asia dealing yesterd

THEUSDOLLAR VS.CANADAS:Is theLongBear MarketForThe US$Finished?:It

doesappearthatafter twostrongyearsin Canadasfavourthat thefavourisaboutto bereturnedtothe US$.Timeonlyshall tellbutourinterest clearlyispiqued.

Canada lost 5,500 jobs in August when it was expected that shes actually gained 10-15 thousand instead. Given the population differences between the US and Canada, this is the rough equivalent of non-farm payrolls having fallen 50 thousand in the US in August! Further, this job loss was sufficient to push the Canadian unemployment rate to 7.3%, up from 7.2%. Before we wax too disconcerted by these figures, however, lets also understand that the changes were interesting and were so in that Canada lost 31,000 part time jobs and replaced them with 25,700 full time jobs instead. When one understands that part of the report it is far less onerous than it looked at first. This then brings us to our changing view on the Canadian dollar, of which weve been relentlessly bullish for a decade or more. In speech after speech weve given and when weve traded the C$ over the course of the past ten years, weve always and everywhere erred bullishly of the C$ vs. the US dollar. Never were we bearish. If we spoke and if we traded we spoke and traded bullishly. But weve been silent on the C$ for months now and as the chart at the bottom left of p.1 would seem to suggest, the long downward trend of the US dollar relative to the C$ may have ended. Yesterday for the first time in a very, very long while, the C$/US$ rate traded to parity and just barely beyond. It has fallen back from parity this morning, but it will be interesting to see if parity proves formidable and thus is supportive of the C$ or whether it proves vulnerable and further supportive of the US dollar instead. Where money was flowing readily to Canada in expectation that the US would be lowering rates while Canadas central bank was raising them, money now seems to be flowing out of Canada and to the US instead as it becomes clear that rates in Canada shall not be going up anytime soon and may indeed be moved lower. Time only shall tell, but our interest in the C$ is once again piqued, and this time not bullishly: Mkt Japan EC CHf UK C$ A$ NZ$ Mexico Brazil Russia China India

09/13 09/12 Current Prev 76.95 78.85 1.3620 1.3600 .8835 .8865 1.5795 1.5825 .9955 .9990 1.0305 1.0310 .8205 .8155 12.92 12.85 1.7030 1.6720 30.27 30.15 6.3900 6.3890 47.06 46.93

US$Change + .15 Yen - .20 Cents - .30 CHf + .30 Pence - .35 Cents + .05 Cents - .50 Cents + .07 Centavos + 3.10 Centavos + .12 Rubles + .10 Renminbi + .13 Rupee

Here in the US, the economic news is certainly not that of strength. Weve said it before and we shall say it here again, the US is at best teetering on recession and may already be in one given the data weve seen of late. We pay heed to the ECRIs leading economic indicators for it has been and remains one of our favourite economic data points. The ECRIs index topped out in May and has been heading back in lower the since, falling to from decent positive numbers spring disconcerting negative numbers several weeks ago. Coupling this weakness with the weakness in the Conference Boards Ratio of Coincident to Lagging Indicators, and couple those with weak and weakening copper/tin/aluminium/zinc prices and one has the prescription for an impending or already extant recession. And this then brings us to this mornings National Federation of Independent Business Optimism Index which is to be released today at 7:30 a.m. As is evident from the chart this page courtesy of course of the NFIBsmall business has not been optimistic about its future for years. Yes, optimism rallied from the lows made in the autumn of 08, but for the past five months the Index has been steadily lower. It will be lower again today we are certain, for small business is concerned about the countrys future. There was some hope apparently ahead of the Presidents speech last Thursday evening, but as Mr. Dan Danner, the President and CEO of the NFIB said

Small-business owners needed to hear something bold from President Obama tonight, but instead just heard more of the same. His plan does not address the fundamental problems facing small business today. In addition, recent history tells us that a huge federal stimulus program is the wrong approach, and again sends the message that the president thinks he can spend his way out of this recession. The truth is that small businesses need the government out of their way. Tax breaks are always a welcome help to small businesses, especially in these tough economic times. But those outlined tonight by the president are temporary, and avoid the question of meaningful business tax reform. Lack of sales is still a major concern and there is a great deal of uncertainty among small businesses thanks to the threat of higher taxes and the thousands of pending federal regulations. The presidents speech did little to ease those concerns. We suspect that Mr. Danner speaks for most of us in business. Government cannot create jobs; the best that government can do is stay out of the way, perhaps creating the proper environment in which businessmen and businesswomen can create jobs. We fear that todays NFIB index will simply show a material deterioration on the part of small business optimism. This will not change until the elections next year; mark our words on this.

Selling in gold shall become all the more concerted should stock prices begin to falter during the day. As weve argued, margin selling in equities will almost certainly beget liquidity raising selling in gold, for a large number of hedge funds are materially long of equities obviously and are also long of gold as a quasi-hedge. If their equity positions go pear shaped, we can imagine that gold shall be tossed overboard with some sense of panic and a move down below $1800/oz on dollar terms again today would be reason for very real concern. As Sgt. Esterhaus used to say, Be careful out there!: 09/13 1813.2 40.42 712.00 1818.0 44.90 159.73 334.07 09/12 1948.7 41.28 730.00 1828.0 44.40 160.60 334.24

Gold Silver Palladium Platinum Gold/silver DJ/UBS Reuters

- 36.50 - .86 - 18.00 - 10.00 + .10 - 0.5% - 0.1%

Turning then to the grain markets, the USDA released its monthly crop reports yesterday and to begin the reports were modestly bullish of corn, were modestly bearish or even perhaps neutral for wheat and were manifestly bearish of soybeans. Further, and for what seems to be the first time in some while, the markets actually responded properly to the numbers; that is, corn prices rose; wheat prices fell a bit and bean prices fell sharply. It was and is as if rationality actually still does exist if one looks long enough. Turning firstly then to the corn, the Department cut corn yields by 4.9 bushels/acre to 148.1 for a crop of 12.497 billion bushels compared to its previous estimate a month ago of 12.914 billion bushels on an average yield/acre of 153.0 and further compared to pre-report consensus guess-times going into the reports on LaSalle Street of 12.55 billion bushels and 149.1 bushels/acre. Further, as if the Department knew how bullish this might be it moved to offset that bullishness by cutting its demand figure by 400 million bushels by cutting feed demand by 200 million bushels and by cutting ethanol and export demand by 100 million bushels each. World ending stocks of corn were increased nearly 3.0 million metric tonnes, of which 2.8

COMMODITY PRICES ARE TENDING TOWARD WEAKNESS

and that is particularly true in the precious metals especially if one owns them in US dollar terms but is materially less conspicuous if one owns them in EUR or Sterling terms. Golds fortunes and silvers too for that matter seem to be waning at the moment and we offer up the chart this page of gold (in US dollar terms) hourly over the course of the past several weeks that shows gold having made a series of lesser highs and as of this morning trading below its 200 unit moving average. A move downward through $1802$1807 would likely set off a sizeable sum of stop loss orders. Caution and we think rather extreme caution is advised.

was in Brazil and this we found a tad strange but shall be accepted for now. Last evening, the USDA also released its weekly crop progress report and the corn crop is now rated 53% good/excellent compared to 52% so rated last week. This was a bit better than LaSalle Street had been expected, but the impact of this latter report has thus far been negligible. Turning to soybeans, the USDA has the crop in the ground now pegged at 3.085 billion bushels compared to 3.056 billion a month ago and compared to LaSalle Streets consensus guess-timate of 3.025 billion bushels. The yield/acre was raised from 41.4 bushels/acre last month to 41.8 this month, surprising the market rather sharply and sending prices down materially. They ended the day there too, even as corn prices rallied smartly. Further making matters bearishly worse, ending stocks here in the States were increased by 10 million bushels to 165 million bushels. Interestingly, where the USDA seemed to offset the bullishness of the corn crop figures by cutting export and feed demand, the Department seemed increasing here to offset of the US bearishness of the report by exports soybeans by 15 million bushels. World ending stocks of soybeans were increased by 1.6 million metric tonnes with increases in ending stocks in Brazil and Argentina. As for the weekly crop progress report, the soybean crop is presently rated 56% good/excellent and this is unchanged from last week and is about as had been expected. Turning then to wheat and we apologise to those who do not follow the grain markets as closely as others do, but this was an important series of reports and they do need to be covered with some degree of seriousness here the Department raised its estimate of ending stocks 90 million bushels from that of a month ago as exports were cut rather sharply by 75 million bushels.

Interestingly its figures for feed were kept unchanged, which we found interesting give that wheat prices are not at a discount to corn and we would have expected the modest sums of wheat feed usage to have been increased somewhat. World wheat ending stocks were revised higher by 5.5 million metric tonnes as the export numbers for Canada, Russia, the other former Soviet states and the EU were all revised very slightly downward but which in aggregate became somewhat more important. This then brings us to the weather, which suddenly is again rather important. Firstly rain is forecasted for much of the southwestern hard red winter wheat growing areas, but as has been so archly typical this year, Texas will likely get little if any of this rain. Nonetheless, the rain that is forecast will certainly help with drilling the new hard red winter wheat crop and is thus modestly bearish of wheat. More importantly for the corn and soybean crops, however, much colder weather is now forecast for the next two weeks as frosts and actual hard freezes are likely across the upper Midwest and far northern Plains as well as the Canadian Prairies this week and next. The next two or three nights may even be cold enough to cause very real crop damage in Canada this morning and in the northern Plains and upper Midwest Tuesday night and Wednesday night. As the cold moves south, the Great Lakes areas including Minnesota and Wisconsin may experience freezes Wednesday and Thursday night. Drew Lerner, of World Weather Inc. reported last evening that

The bottom line this evening leaves the potential for crop damage this week across many crop areas from the Dakotas through Minnesota and into a part of Wisconsin and Michigan. Frost and a few light freezes may induce less serious damage from northeastern Nebraska through Iowa to northern Ohio. Most of the damage will occur to immature crop quality, but a few of the

more immature soybeans may suffer bean shattering and permanent production losses because of temperatures well below freezing for too long while crops are still developing. Rain in hard red winter wheat areas this week and again late in the weekend into early next week will be ideal in lifting topsoil moisture temporarily for some short term winter wheat planting. The prospects for good follow up rain are not the best and some producers may opt to wait on additional rain before risking another failed crop. So we watch the weather, with cold rainy weather perhaps being bearish of wheat but perhaps being potentially quite bullish of corn and soybeans instead. Finally, just for drill weve included a map here this morning, courtesy of The National Drought Mitigation Center, noting the severity of the drought conditions prevailing in the US southwest and predominately in Texas. There exceptional drought conditions prevail, with those conditions extending northward into much, it not indeed most, of Oklahoma and even into southwestern Kansas. With the winter wheat crop now about to be drilled any rain is welcome but huge sums of rain or snow cover this winter are needed.

one month ago was an already wide 63 cents and the 1st3rd backwardation was 70 cents. This morning they are out to $2.06 and $3.24 respectively. Demand for crude is thus high relative to the supply and crude is being bid out of storage as a result: OctWTI up 330 88.41-46 NovWTI up 325 88.53-58 DecWTI up 313 88.68-73 JanWTI up 306 88.86-91 FebWTI up 299 89.04-09 OPEC Basket $112.15 09/08 Henry Hub Nat-gas $3.93 Yesterday we talked about the situation regarding Sunoco and the closing of its refineries on the east coast here in the US and we wish to be clear about one thing which we might have been somewhat unclear about. Sunocos problems are that it buys crude priced relative to Brent rather than priced relative to WTI but is forced by the market to sell its refined products relative to WTI. This is an untenable position of course, and it is this that has forced Sunocos hand. However, some clients wrote in to ask if Sunoco actually bought Brent crude and the answer is Absolutely not. It input crudes are priced relative to Brent and/or like Brent, but it does not buy Brent. Brent crude rarely if ever makes its way to the US nor should it.

ENERGY PRICES ARE HIGHER BUT THEY SOON SHALL FAIL for stock prices are
under pressure this morning and as weve learned rather well in recent weeks, as go equities, so goes energy; and as goes energy, so go equities. The correlation holds, as strange as that may seem. Indeed, yesterday, crude oil prices began to strengthen mid-morning, and within an hour or so, stocks began to firm. This morning, as the stock index futures falters, energy prices were holding firm but have begun falling from their highs and now appear vulnerable. Firstly however, the term structures continue to move violently, with the once huge contango in WTI now almost gone while the backwardation in Brent keeps widening. The 1st/2nd futures contango in WTI a month ago was 50 cents and the 1st-3rd contango was precisely $1.00/barrel; this morning those have narrowed to 12 cents and 27 cents respective. As for Brent, the 1st-2nd backwardation

HARE

PRICES

REMAIN

UNDER

PRESSURE,

although the bulls were out in force

late yesterday here in the US, happy to see the market finish higher upon the day and clearly touting that close as the beginning of the next leg of a bull market. We have very, very serious doubts however about that conclusion for as we look at the charts of the NASDAQ, the S&P 500, the Dow, the NYSE or the IBDs Mutual Fund Index we see indices that are everywhere beneath their 20 day moving averages where the rallies are on decidedly smaller volumes than are the breaks and where the recent trading patterns seem all to be consolidations rather than bottom formations. Just doing so simple but we think effective chart gazing it appears to us that the NASDAQ might well extend its weakness eventually toward 2100 from the current 2450 level; that the S&P could make its way eventually to 980

from its present 1165 level; that the NYSE Index could fall to 6820 from its present 7150 level. These are not insignificant downside targets, but they become very real targets if the lows of the past several weeks are taken out. Indeed, the lows neednt be taken out but rather just the recent very short term upward sloping trend lines cast across the bottoms made since early August need to be broken to signal these longer term objectives. AS in the EUR noted above, strength then is to be sold into; weakness is not to be bought. For the record, our Intl Index is now down 1300 points on the year, or a stunning 15.6% year-to-date. Our ETF in Canada is down 7.7% so we are beating our benchmark by nearly 800 basis points; however, as we know all too well, One cannot eat outperformance on the downside. Being down only 7.7% when the world is down 15.5 is very small solace; however, we know for certain that when we sit in tomorrows NC State Endowment Committee quarterly report and listen to other portfolio managers explain their performance we shall be sprayed with talk of outperforming our benchmark. Such is the nature of the beast: Dow Indus CanS&P/TSE FTSE CAC DAX NIKKEI HangSeng AusSP/ASX Shanghai Brazil up down down down down up holiday up down down 69 239 85 120 118 81 34 29 93 11,061 12,149 5,130 2,855 5,072 8,616 19,030 4,073 2,469 55,685

ON THE POLITICAL FRONT,

one has to

wonder about any government that supports Syrian President Assad, but for the moment Moscow is opposed to any sanctions to be imposed upon the Assad regime that are not also imposed upon those opposed to the regime. This is astonishing to us given the massive nature of crack-down that Assad has wrought upon his own people. The latest estimates have 2600 civilians dead from the uprising and that 433/month or just over 14 people killed every day by Assads militia since the start of the uprising. We might have expected such a response from Syrias neighbours, but certainly we did not expect such a response from Moscow, and certainly not one issued by President Medvedev. Here in the US, the latest polls from CNN have Gov. Perry of Texas leading the other Republican candidates. In the first poll, which includes Gov. Palin, although she has not yet chosen to run, Perry has the support of 30% of the registered Republicans polled. In 2nd place is Gov. Romney with 18%; Gov. Palin has the support of 15% and Ron Paul has the support of 12%. The others trail off from there. In a poll without Gov. Palin included, Gov. Perry has the support o f 32%; Romney has 21%; Ron Paul gets 13% and Michelle Bachman leaps up into third place with 7%, tied there with former Speaker of the House Newt Gingrich. Mr. Bachmann, however, was running much more strongly a month ago when in the same poll she had the support of 12%. The debate last evening amongst the Republican Presidential candidates was somewhat entertaining, but no one clearly won the day. We will suggest that Ms. Bachmann did little to further her cause and that Governors Romney and Perry did nothing to harm theirs. Understanding that the debate took place before a Tea Party group, the vehemence with which the candidates attacked the Fed and the Fed Chairman was understandable, but was nonetheless disconcertingly over-the-top.

TGL INDEX down 1.4% 7,034

In our ETF in Canada, we are modestly bearish of stocks, remaining as we have been long of nat-gas trusts; fertilisers; rare earths miners and an Australian/Asian government bond fund, all hedged with short positions in the S&P futures. We are likely to ramp up those short positions in the not very distant future. In our notes in Canada we are rather aggressively short of the S&P futures and especially of the Dow Jones EUR Stoxx 50 futures. We have been for two months and we remain so presently.

COMMENTS ON THE CAPITAL MARKETS

NORTH AND SOUTH AMERICA: THE Ask 100 NEW SAUDI PENINSULA:
Americans who the US largest supplier of crude oil is and not one not a single one will get it right. This is a trick question really, for most people think theyve heard Who is the US largest supplier of crude from abroad? and answer quickly Saudi Arabia. We have to laugh, however, for the Saudis these days are more often than not relegated to 4th or 5th place behind Canada, Venezuela, Mexico and Nigeria, while the US largest supplier of crude has been and shall remain for the very, very long foreseeable future itself! We still supply the majority of our own crude oil needs and will, with Canada our largest supplier from abroad by quite a large and increasing sum. What most people do not understand is just how material is the growing production of energy crude and nat-gas combined in the Americas and it is a very real possibility that by the 2020s it is the Americas that will usurp the Persian Gulf as the mega-producer of energy. The reasons are both technological and political, but it has been quietly known by the energy cognoscenti just how vast were and are the North American supplies of energy in difficult places such as the Tar Sands in Canada and the shale formations in the US. However, getting that energy was technologically and physically difficult, if not indeed impossible until recently. But advances in seismic exploration techniques, advances in the techniques used to transform tar sands into usable crude oil, and perhaps most importantly of all the advances in horizontal drilling techniques have made heretofore impossibly expensive energy much less expensive and in many instances increasingly in-expensive. Lets call these new types of energy un-conventional, and using this terminology, North American energy supplies will soon be on the order of 4.4 trillion barrels of usable crude 2.0 trillion barrels here in the US and another 2.2 trillion in Canada compared to the Saudi Peninsulas and North Africas 1.2 trillion. Then lets add another 2.0 trillion barrels of proved reserves of crude oil in Brazil, and not even counting what Mexico might have offshore, we are suddenly talking about a huge sum of findable and reasonably cost effective energy that only a short while ago was non-existent. Oh, and weve not even

begun to talk about the supplies of nat-gas that shall be and are presently being made available in the shale formations scattered about N. America. When we hear then about the demise of the West and the ascendency of the Middle East, and when we hear about Peak Oil and other concerns we tend to quietly laugh to ourselves here. The notion of Peak Oil may be of some concern to PEMEX and perhaps to the Saudis, but ask someone from the Dakotas about job prospects there and of the number of oil drilling rigs moving into that region on a daily basis or ask those in Canada about the Athabasca Tar Sands, or ask Brazilians about the huge findings of crude oil offshore there and the story is of growth and bright futures.

WE THOUGHT CANADAS WHEAT FARMERS WERE SMARTER THAN THIS: We really thought the wheat farmers in Canadas
western provinces were smarter than theyve proven to be and that they would prefer access to free markets instead of the captive marketing of their wheat theyve been forced into through the Canadian Wheat Board over the past several decades. We were wrong. Put to a vote, 62% of those who voted did so in favour of retaining the CWB, otherwise referred to as the single marketing desk. The vote, it appears, was fair, for it was overseen by MNP LLP in Canada, a premier accountancy firm and they certified the vote, noting that 55% of Canadas wheat farmers participated in the plebiscite. Never would we have believed that the farmers of Saskatchewan and Alberta would vote so heavily against free markets, but we were wrong. This we think is very sad, but the majority has voted and that, as they say, is that.

GERMANY 1; THE REST OF EUROLAND 16: We forget here in North America

just how large is the European Union, but at present there are 27 member states. As for the European Monetary Union, presently that is a sub-set of those in the broader political union, and there are 17 member states there and Germany is far and away the largest and most important member.

Within the Monetary Union is of course the mighty European Central Bank, now headed by Mr. Trichet but soon to be headed by Mr. Draghi and the ECB is directed by its six member Executive Committee. This is where things become uncomfortable for Germany and the Germans, for on this six member board are three southern European nations and three from the North, with Germany casting one vote of six although shes just a bit more than 30% of the Monetary Unions total GDP!. Further, when Mr. Trichet stands down for retirement later this year, his replacement, Mr. Draghi, is of course from Italy and that shall tip the voting scales even more sharply against Germany, for Mr. Trichets northern seat will be taken by yet another southerner. Where we German wed be uncomfortable, obviously, worried that the bulwark against inflationary monetary policies we thought the ECB was supposed to have been shall become instead a very leaky dike.

trend toward stronger Brent should reasonably re-assert itself today. Further, given the movements in the term structures, we wish to buy nearby Brent while selling more deferred WTI; however, for simplicitys sake we note that the November spread between Brent and WTI was trading barely above $24/barrel when entered the position. Well mark the November spread as our trade. 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://cibcppn.com/ScreensCA/CANProductUnderlyings.aspx?ProductI D=221&NumFixings=3Existing investors in HAG should go to: http://jovian.transmissionmedia.ca/fundprofile_hap.aspx?f=HAG&c=&l The following positions are indications only of what we hold in our ETF in Canada, the Horizons AlphaPro Gartman Fund, at the end of the previous trading day. We reserve the right to change our opinions at a moments 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 a nat-gas trust, a fertilizer company, and a domestic rare earth elements mining operation. We own an Asian short term government bond fund, the C$, the A$, and gold. Short:
We are short S&P futures to hedge the positions mentioned above. We are also short the Euro and Pound Sterling.

RECOMMENDATIONS
1. Long of Six Units of Gold; Two each in Sterling terms, in EUR terms and as Thursday, September 8th two in Yen terms.:
Weve owned gold in non-US dollar terms for months, sometimes more than we should and sometimes less, but on balance and consistently s weve held to this general thesis. As noted Wednesday, August 31 , with gold back to the average level that we sold so much of our position three weeks ago we returned as buyers of gold in EUR and Sterling terms once again two units of each. We bought gold at or near 1124 and at or near 1267. As we write, gold is trading 1160, up 26 from where we bought it last and 1336, up 89. We also are long of gold in Yen terms, having bought it at or near 141,950/oz and it is this morning trading 139830/oz..

The CIBC Gartman Global Allocation Notes portfolio for September is as follows:

Long: 5% Canadian Dollars; 15% Australian Dollars; 10% Gold; 10% Corn; 5% Soybeans Short: 10% Yen; 15% Euro; 15% British Pound Sterling; 5% S&P 500 Index; 10% Dow Jones EURO STOXX 50 Index
Horizons AlphaPro Gartman Fund (TSX: HAG): Yesterdays Closing Price on the TSX: $8.56 vs. $8.56 Yesterdays Closing NAV: $8.53 vs. $8.62 CIBC Gartman Global Allocation Deposit Notes Series 1-4; The Gartman Index: 137.41 vs. 136.50 previously. The Gartman Index II: 114.11 vs. 113.28 previously. For the year our ETFs NAV is down sharply8.7%... and although we are outperforming the global stock markets by several hundred basis points, as they say, You cant eat outperformance. At the same time, the Gartman Index is +2.2%. Last year our ETF rose 3.8% andour Index was up 19.3%.

2. Long of nearby gold/short of more deferred gold futures: Given the situation regarding Hugo
Chavez and his gold, we bought nearby gold and sell more deferred gold, thinking it is quite possible that gold shall go into a backwardation. Since then the Dec11/April12 spread has narrowed by $0.20, but it had been 50 cents better late last week.

3. Long of One Unit of the Ten year note: Few are following us on this trade, but knowing that the best trades are the most difficult ones, we wished last week to return to the long side of the US Treasury market. We were long of notes the week previous but covered ahead of the payrolls figure. Now, however, weve returned, buying one unit. We shall risk the trade using our hour stop as it our usual methodology to 128 and we look for 132-133 over the course of the next several weeks.
Further, we wish to add to the position this morning, buying another unit upon receipt of this commentary. Well then use the same stop as above, but will be moving that stop higher swiftly.

Good luck and good trading, Dennis Gartman

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4. Long of One Unit of Brent Crude/short of One Unit of WTI: Friday, August 9th, we bought Brent
crude and we sold WTI, for after two hard days of correction, the

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