Fast Money
Word on the Street
WORD ON THE STREET VIDEO
How To Trade This Market
After a few days conservative strategy should not be abandoned according to Macke. Stocks should be sold into rallies and bought on dips. No one ever lost money taking a little profit. They should not be sold anytime the tape is green. A small percentage of gains should be taken off to maintain exposure but discipline is needed and bottom fishing shouldn’t be done. He said hope for the best but prepare for the worst.
$4 Gas Trade
Summer driving is approaching and serious pain at the pump is expected, what is expected? CNBC Contributor Addison Armstrong joined the show and talked about the seasonal bounce. The huge margins from years past should not be expected with crude staying high. The refiners that have cheap crude input cost, those that have bigger capacity for heavier, harder to refine crude oil. Valero (VLO) and Frontier (FTO) were both named here. Seymour echoed the refiner trade with VLO, ConocoPhillips (COP) and Tesoro (TSO) all talked about. Najarian would buy VLO on dips and Finerman thinks if VLO takes some capacity offline other refiners would benefit.
JPMorgan Take With Steve Liesman
The Fed’s $29 billion loan to JPMorgan (JPM) to purchase Bear Stearns (BSC) was talked about with CNBC’s Steve Liesman. The loan is for 10 years at a rate of 2.5% which was called cheap. Neither the Fed nor JPM will lose money on this loan and it gives what Finerman called “forever” to pay it back.
Chartology
Chart expert Carter Worth joined the panel to analyze some charts. He was bullish on the chart for Arch Coal (ACI) and Najarian agreed. Finerman told us her firm sold some financials including Fannie Mae (FNM). Macke said buy what u can use, he named U.S. Steel (X). Seymour named a group of material stocks that including Arcelor Mittal (MT), Market Vectors Coal ETFKOL), BHP Billiton (BHP) and Vale (RIO).
Emerging Market Trade: Taiwan
A presidential election just happened in Taiwan and the stocks are rallying. The opposition party won and that sets up the development of friendly relations with China in Seymour’s eyes. It is also the fifth largest economy in Asia and is cheap when compared to the rest of the continent. Seymour offered up a Taiwan basket for investors that included: iShares Taiwan ETF (EWT), Taiwan Semiconductor (TSM), Chunghwa Telecom (CHT), AU Optronics (AUO), Siliconware Precision Industries (SPIL) and Advanced Semiconductor Engineering (ASX).
POPS&DROPS
POPS – CIT Group (CIT) popped 34%. Finerman said don’t touch CIT. General Motors (GM) popped 4%. Seymour explained the move is from short-covering. Children’s Palace (PLCE) traded up 12%. Finerman explained that PLCE is rallying on news from last week that the company terminated its deal to manage the Disney Stores chain. Palm (PALM) traded up 8% off a UBS upgrade. Najarian advised investors to avoid PALM. Walgreen (WAG) popped 5%. Macke thinks WAG is starting to look better. Circuit City (CC) traded up 3%. Macke said he wouldn’t buy CC.
DROPS – BioVail (BVF) fell 4%. Najarian mentioned that he is seeing a lot of put activity on BVF. and Visa (V) fell 8%. Seymour said it was interesting that China Life (LFC) bought a big position in V.
Fast Money Madness
MADNESS MADNESS VIDEO
Final Trade
Macke likes Valero (VLO). Seymour recommends the U.S. Natural Gas ETF (UNG). Finerman picked Altria (MO). Najarian advised investors to stick with JPMorgan Chase (JPM) and CEO Jamie Dimon. favors
WORD ON THE STREET VIDEO
How To Trade This Market
After a few days conservative strategy should not be abandoned according to Macke. Stocks should be sold into rallies and bought on dips. No one ever lost money taking a little profit. They should not be sold anytime the tape is green. A small percentage of gains should be taken off to maintain exposure but discipline is needed and bottom fishing shouldn’t be done. He said hope for the best but prepare for the worst.
$4 Gas Trade
Summer driving is approaching and serious pain at the pump is expected, what is expected? CNBC Contributor Addison Armstrong joined the show and talked about the seasonal bounce. The huge margins from years past should not be expected with crude staying high. The refiners that have cheap crude input cost, those that have bigger capacity for heavier, harder to refine crude oil. Valero (VLO) and Frontier (FTO) were both named here. Seymour echoed the refiner trade with VLO, ConocoPhillips (COP) and Tesoro (TSO) all talked about. Najarian would buy VLO on dips and Finerman thinks if VLO takes some capacity offline other refiners would benefit.
JPMorgan Take With Steve Liesman
The Fed’s $29 billion loan to JPMorgan (JPM) to purchase Bear Stearns (BSC) was talked about with CNBC’s Steve Liesman. The loan is for 10 years at a rate of 2.5% which was called cheap. Neither the Fed nor JPM will lose money on this loan and it gives what Finerman called “forever” to pay it back.
Chartology
Chart expert Carter Worth joined the panel to analyze some charts. He was bullish on the chart for Arch Coal (ACI) and Najarian agreed. Finerman told us her firm sold some financials including Fannie Mae (FNM). Macke said buy what u can use, he named U.S. Steel (X). Seymour named a group of material stocks that including Arcelor Mittal (MT), Market Vectors Coal ETFKOL), BHP Billiton (BHP) and Vale (RIO).
Emerging Market Trade: Taiwan
A presidential election just happened in Taiwan and the stocks are rallying. The opposition party won and that sets up the development of friendly relations with China in Seymour’s eyes. It is also the fifth largest economy in Asia and is cheap when compared to the rest of the continent. Seymour offered up a Taiwan basket for investors that included: iShares Taiwan ETF (EWT), Taiwan Semiconductor (TSM), Chunghwa Telecom (CHT), AU Optronics (AUO), Siliconware Precision Industries (SPIL) and Advanced Semiconductor Engineering (ASX).
POPS&DROPS
POPS – CIT Group (CIT) popped 34%. Finerman said don’t touch CIT. General Motors (GM) popped 4%. Seymour explained the move is from short-covering. Children’s Palace (PLCE) traded up 12%. Finerman explained that PLCE is rallying on news from last week that the company terminated its deal to manage the Disney Stores chain. Palm (PALM) traded up 8% off a UBS upgrade. Najarian advised investors to avoid PALM. Walgreen (WAG) popped 5%. Macke thinks WAG is starting to look better. Circuit City (CC) traded up 3%. Macke said he wouldn’t buy CC.
DROPS – BioVail (BVF) fell 4%. Najarian mentioned that he is seeing a lot of put activity on BVF. and Visa (V) fell 8%. Seymour said it was interesting that China Life (LFC) bought a big position in V.
Fast Money Madness
MADNESS MADNESS VIDEO
Final Trade
Macke likes Valero (VLO). Seymour recommends the U.S. Natural Gas ETF (UNG). Finerman picked Altria (MO). Najarian advised investors to stick with JPMorgan Chase (JPM) and CEO Jamie Dimon. favors
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