Shipping stocks gained Monday, and noted investor Dennis Gartman thinks investors should be ready to jump into the trade.
“Don’t be surprised if you get a correction for a day or two, but I think these are stocks you need to own for the very longer term,” he said on “Fast Money.”
Although the Baltic Freight Index, which is used as a barometer of international trade, was down 95 percent, the editor and publisher of The Gartman Letter noted it was a lagging indicator.
“Now we’re seeing the share prices move up long before the Baltic Freight Index does,” he said. “That happens a lot.”
Gartman said he would want to focus primarily on dry bulk and containers.
“Right now, the action in the shares tells me that’s what’s going on,” he said. “I want to be there first, tankers later.”
Gartman said he liked Genco Shipping, Diana Shipping and DryShips.
“Pay attention to what’s going on and be ready to buy any breaks that you get,” he said.
On the options desk, Scott Nations said the names to watch were Genco and Diana.
“Calls in both names were really hot today,” he said.Page 1 of 3 | Next Page