supplant fossil fuel he knows that. >> dennis, good to see you thank you. >> thanks, melissa >> dennis gartmannds like dennis believes in decarbonization >> and not just from canada. >> how would you play that >> go to canada. >> you would >> no, i'm kidding >> anyway. >> what i think is actually the current environment towards oil is i think people are way too bearish, a place where the economy if you have gdp 1.6 or where we are, i think the supply balance is not where opec said it was going to be, but you get to a place here where actually i think the risk is the upside at a minimum this egregious move lower is not going to happen >> lower than ever right now the xle is down 14%. you're going to see guys start to nibble in the xle in the next two to three weeks it's getting to that point of critical mass. >> guy, would you nibble >> not yet, i don't think. i'll say it again, bk has been on deutsche bank, if you think crude bottomed, i think the play is get along deutsche bank if crude rallies 10% to 15%, if you think crude bottomed, buy deutsche bank. >>> still ahead, $2.2 million, one is b

the market moves joining us on the cnbc news line, contributor, founder of the gartman letter, dennis gartmanis this normal volatility after a strong run up in stocks or are you reading into the commodity weakness as something more serious? >> clearly there's a continued deflationary trend going on in the commodity markets that one cannot help but overlook if you look at the broad market indices, the commodity market is down almost 10% for the year to date predominantly that can be attributed to the weakness in the crude oil market which may well continue. nat gas continues to be weak energy prices on balance, throw coal on top of that, you have a problem there. at least the grains have stopped going down you talked about the fact that gold suffered its worst day thus far this year. it may have in the last 24 hours. if you look at where gold has been over the course of the last six, seven, eight months, it's quietly moving higher. we are up for the year in dollar terms, up for the year in yen denominated terms, and up for the year in euro denominated terms. though the commodity markets have b

dennis gartman. we'll talk about red wheat. on the markets, about being right and being wrong and new volatility. this is bloomberg. ♪ francine: this is bloomberg "surveillance." we go to italy because it is time for the morning must read. today's comes from bloomberg -- writing on the italian banks. we were talking about this when we had news of intessa. the good stuff in two failing italian banks and that italian government was left with a rest. there is little doubt that the solution orchestrated last weekend by the government has -- avoiding financial panic but padoan is wrong in saying there was no other options. italy could have opted to resolve the banks o2115 months ago." let's get back to our guests. now, luigi, as soon as the news came out, you were very critical about the solution found by the government. thatmain bug is taxpayers are paying for something that is unfair? luigi: i have many. the first one is the government waited for 16-17 months to act. this is not a sudden catastrophe. this is a slow motion film, du

dennis gartman up next. auto loans mortgages and especially student loans.ebt threat to the economy? back to iconices talking to cosmetics queen bobbi brown. all that and much more coming up on "power lunch." >>> oil briefi the $46 level. crude traded as low as $45.53 before. bring in editor and publisher of the gartman letter. dennis good to see you. >> good to be seen. thank you. >> reaction to the inventory numbers? >> obviously reaction to today's inventory numbers. surprisingly large. not just the crude oil number itself. most people expected that there would be a draw by the eia and instead an increase in crude inventories and also in distillants and gasoline. the aggregate sum up over 10 million barrels. quite a large increase. let us remember, last week you had a material decline in inventorie inventories. like stocks sometimes there's corrections. nonetheless, a bear market. continues to widen. crude oil bids for storage and supply continues to outstrip demand. still a bear market in crude oil and probably still heading lower, i'm afraid. >> put thi

. >>> today on futures joined by dennis gartman he's going to talk about the crude crush. joe zidle is breaking down which sector might be the surprise winner futuresnow.cnbc.com. scott, stay with us. you have a new book out. "a history of the united states in five crashes. you're telling the story through major meltdowns. is there any one take away historically that applies today? >> jackie, first of all, this is a book that i wrote for everybody. this is a general interest book, and i wrote it because i was just struck by the drama that's inherent in each of the five modern stock market crashes. we know how it ends, but every time we have a crash there are heroes, there are villains, there are moments in time when it didn't have to end in a crash. the bubble could have deflated slowly the interesting thing is each of the crashes, even though there's more than 100 years between the panic of 907, the first modern stock market crash and the flash crash on may 6th, 2010, there are stunning similarities. we know that the stock market always gets ahead of itself, but there are

you're looking at wti crude right now. 47.35. >>> joining us right now is cnbc contributor dennis gartmans the editor and publisher of the gartman letter. let's talk about oil. it was under pressure last week before we even heard about this situation. now what? >> beck, i think it continues to go lower. one of the things to pay attention to is the term structure. the difference between the front month and the second, third, fourth, fifth month back. and what you're seeing is that contango continuing to widen which tells you there's an abundance of crude, either of supply, or a lack of mend and crude is bidding to go into storage. that was beginning to widen again last week. until that changes direction, and i don't see that contango narrowing, it means crude oil prices are going to continue going lower. >> walk me through contango again? the front month is higher than the months behind it? >> no the front month is lower than the month behind it. back gradation is when the front month is higher than the months behind it. why they call it contango is still quite beyond me. it's a silly term