Dennis Gartman: Crude Oil Has Bottomed, But Has The Dollar Topped?

Crude oil has again started spiking up after establishing six-year lows and is currently trading above the $50 per barrel mark. Dennis Gartman, publisher of "The Gartman Letter," was on CNBC recently to discuss if crude oil has bottomed and share his views on the dollar and the S&P 500.

Crude Has Bottomed

"It would appear that the crude oil market has probably bottomed," Gartman said. "The term structures, the manner in which the front months relative to the back months in crude oil have begun to change materially forced me to say that the bottom has probably been seen.

"I would hesitate saying that the dollar has seen its best levels and the euro has seen its worst, but it does appear to me that crude oil has done that exactly that, yes."

Related Link: S&P 500 Index Futures In Danger Of Rare Back-To-Back Down Days

One At A Time

Gartman was asked, since dollar and crude have a correlation, if he is only willing to look at them one at a time. He replied, "Yeah, I am only willing to look at it one at a time. But nonetheless, we do know that all things being otherwise equal – which is always every economist's out – all things being otherwise equal, a weak dollar begets stronger commodity prices. A strong dollar begets weaker commodity prices."

He continued, "So, yes, if crude oil has seen its lows, the odds are better that the dollar has seen its highs. But I am not quite willing to make that statement yet."

S&P 500: Interim Top

On whether he thinks the S&P 500 has topped out, Gartman said, "I think we have some problems here, and we may well have an interim top of some sorts. I don't think the bull market in stock prices has seen its best levels yet."

Shares of the United States Oil Fund LP (ETF) (NYSE: USO) recently traded at $18.12, up 4.4 percent.