Monday’s “Fast Money” TV show was a special 1 p.m edition due to NBC’s Olympic coverage.
Russia Trade
The traders talked about the military conflict between Russia and Georgia that started on Friday. Georgia has agreed to a cease-fire but Russian hasn’t signed the agreement yet. Seymour said the conflict is about pride more than anything else. He thinks the United States will stay out of the war. Seymour believes both sides are at fault for the violence, but he sees the war ending soon. Seymour pointed out that Russia is cheap on a valuation basis and he likes Gazprom (GZPFY.PK), Vimpel-Comm (VIP) and Mobile Telesystems (MBT).
Oil Trade
The traders discussed some energy trades after crude oil prices fell $2 a barrel and the dollar continued to trade higher. Terranova said buy anything that was hurt by rising oil prices. Quint Tatro said short the XLE (XLE) or buy the DUG (DUG). Najarian mentioned he sold out of his refiner stocks. Macke said he bought the UUP (UUP) because he thinks the dollar is ready to move much higher.
Chart Of The Day
The chart of the day was Home Depot (HD), after the stock broke above its 200-day moving average. Terranova said the stock is worth owning. Macke likes the chart break but he thinks it’s too late to buy the stock. He said the run-up in Costco (COST) makes sense.
Financial Trade
Najarian explained that Goldman Sachs Group (GS) is breaking out and now is the time to buy it. Tarto said the way to play financials is with the XLF (XLF) with a stop below $21. Macke said the financial sectors should work for the next few days.
Tech Trade
The traders discussed some tech trades after KLA Tencor (KLAC) and Apple Computer (AAPL) jumped sharply on Monday. Najarian likes Intel (INTC), Taiwan Semiconductor (TSM) and Marvell Technologies (MRVL) for long trades. He explained that the strength in Apple was due to news that the iPhone hit $30 million in sales during its first month. He also said Apple’s software application business could bring in $1 billion a year. Terranova and Macke said they are both bullish on the technology sector right now. Tatro said be selective in the space.
Consumer Talk
The traders talked about the change in the trend for the dollar. Najarian said consumer sentiment has changed and the dollar will continue higher. He went on to explained that if the dollar keeps moving higher than oil will fall and the stock market will rise. Tatro thinks the dollar is only going up because oil is falling, so everything in the market is about oil not the dollar.
Solar Chat
UBS issued a report today that said demand for solar looks strong. They upgraded Energy Conversion Devices (ENER) and downgraded SunPower (SPWR) off the report. Najarian said take some profits in ENER despite the fact he noticed money flowing into the alternative energy names today. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!