Word On The Street
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Dennis Gartman On Oil
On Friday crude oil saw a super spike of $11 to a new record high. Morgan Stanley came out and predicted that oil will hit $150. Strategic investor Dennis Gartman joined the traders to discuss what the surge in oil could mean for the stock market. Garmtan said he is afraid to trade crude oil and he has added to his natural gas stocks for a hedge. He explained that the crude oil market is now illiquid and large traders are avoiding the space due to fears of government inquiries. He thinks the government will try and do something to stop the rise in crude oil.
Emerging Market Trade
The traders spoke with emerging markets expert Tim Seymour about some overseas trading opportunities. Seymour explained that with threat of violence in he Middle East and skyrocketing demand from China oil could see supply problems. He said China could match the U.S. for oil consumption by 2020. “I remain bullish on emerging markets, but I’d also own downside protection,” he said, “especially in places such as Brazil that have run on high commodity prices.” Seymour said his favorite markets are Brazil and Russia and not China. He also issued caution on frontier markets. He feels the best trade is to buy emerging market currencies like Wisdomtree Dreyfus (BZF) and Wisdomtree Trust (ICN) because interest rates are rising globally as country’s combat inflation. He also likes Schlumberger (SLB) and Halliburton (HAL) for plays on Russia.
iPhone Talk
The traders discussed the possibility that the new Apple Computer (AAPL) 3G iPhone will come with corporate solutions. Rumors on the street are suggesting the new phone will be released on Monday and will come with a ton of new technologies like faster network access. Some on the street are speculating that the new phone will have business compatibility that will compete directly with Research In Motion’s (RIMM) BlackBerry. Najarian said he is bullish and the stock looks like a buy at current levels.
Corn Trade
The traders spoke with farmer Rogerb Neshem about the recent surge in corn prices. Neshem said the corn crop is in big trouble. He explained that temperatures are cool and the crop is wet and could up short and not meet demand. Neshem mentioned that corn and other grains should continue to go higher. He said he sold Agrium (AGU) this week but he likes fertilizer plays Monsanto (MON) and DuPont (DD).
POPS&DROPS
POPS- Wal-Mart (WMT) popped 1%. Finerman said the company is giving the consumer what they need. National Semiconductor (NSM) jumped 14%. Guy Adami said the stock can still go higher.
DROPS- Wachovia (WB) dropped 15%. Macke said avoid the stock. AT&T (T) lost 4% after Verizon bought Alltel. Najarian said buy the stock on the dip. Big Lots (BIG) dropped 2%. Finerman disclosed her hedge fund is short the stock. Boeing (BA) fell 12%. Macke said the company has backlog issues when airlines are cutting their fleets. Bank of America (BAC) lost 10%. Adami said he doesn’t love this stock.
Fast Money Misfires
Najarian told viewers to buy Yingli Green Energy (YGE). if you followed his advice you lost 30% from the call. Najarian admitted he was wrong but he said he still likes the sector. Finerman advised investors to buy the New York Stock Exchange (NYX). Unfortunately, she was dead wrong and NYX fell 18% from her call. Macke recommended shares of J Crew (JCG). He was dead wrong and JCG fell 7% from his call. Now he Macke says walk away from the stock. Adami told investors that earnings for John Deere (DE) should be strong and he sees the stock going to $100. He was way off and DE fell 8% from his call. Adami said he still thinks the stock goes higher and he would use a stop at $79.50.
Quicker Then The Ticker
Macke said buy Borders (BGP). He was dead right and the stock jumped 16% from his call. Finerman told viewers to sell some Valero July $45 call options. She was on the money and investors who sold those 45s made a 47% gain as the common stock of VLO fell. Adami told viewers that Dell (DELL) looks to be bottoming and the stock should be bought. Adami was right, the stock bottomed and those who bought made a 13% gain. Najarian recommended buying $75 call options on Nucor (NUE). He nailed the call and the options rose 80% from his recommendation.
Trader Radar
Shares of Wal-Mart (WMT) were among the most actively trades stocks on the NYSE Friday,
Final Trade
Najarian picked Energy Conversion Devices (ENER).
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