Dollar Trade
The “Fast Money” crew talked about the recent strength in the dollar. “Higher inflation is positive for short-term interest rates in general, but an inflation-driven rise in yields wouldn’t necessarily be good for the dollar in the medium term,” said Bob Lynch, a currency strategist at HSBC in New York. Merrill Lynch told clients Thursday that inflation will remain a problem for the coming quarters. All the traders said get long the dollar. Quint Tatro recommended getting long the UltraShort MSCI Emerging Markets ProShares (EEV) and long the Ultra S&P500 Proshares (SSO) against it.
General Motors Trade
Seymour advised investors to consider shares in General Motors (GM) because the stock has tested $10 three times. He said the stock popped today because of news the company is restructuring. Macke said for a pair trade get long GM and short Toyota (TM).
Biotech Talk
The traders discussed the biotech sector after shares of Amgen (AMGN) traded higher Thursday after Goldman Sachs Group added the stock to its conviction buy list. Adami said Amgen is a great company but he prefers Celgene (CELG). He mentioned that CELG is his favorite and best in the sector. He also likes Gilead (GILD).
Retail Chat
The traders looked at the retail sector. Macke said Wal-Mart (WMT) and Costco (COST) are the only two retailers he favors. He said he is staying long the stocks.
Financial Trade
The traders talked about the best way to play the financial sector. Adami said investors must buy the best-of-breed banks. He suggested U.S. Bancorp (USB), calling the stock a huge buying opportunity. Seymour said he isn’t buying this rally in the financials. He explained that wages are falling and the consumer is in trouble. However, if an investors really wants to play the sector, he suggested the Ultra Financials ProShares (UYG). Adami told investors to not short Goldman Sachs Group (GS). He thinks the investment bank will crush earnings. Quint Tatro said he is watching the Financial Select Sector SPDR (XLF) because it’s approaching the technically important area near the 50-day moving average. He also mentioned that he didn’t like the action in Goldman Sachs today.
Oil Trade
The gang discussed the oil market after crude prices pulled back on Thursday. Adami said oil is weak and the run higher yesterday wasn’t a strong reversal. He explained that the Russian conflict should have taken it much higher. Seymour said M&A activity in the sector could heat up. He advised investors to watch BHP (BHP) and Vale (RIO). Quint Tatro said the best trade is UltraShort Basic Materials ProShares (SMN). He thinks the trend for commodities going higher could be over. He is also looking to short the Energy Select Sector SPDR (XLE).
RIMM Talk
The traders talked about Research In Motion (RIMM) following the news that Merrill Lynch reiterated its $170 price target on the name. Seymour said from a technical perspective the stock is going higher - plus everyone keeps upgrading the stock.
Homebuilder Trade
Adami said he likes Home Depot (HD) in the housing space. He advised investors to get in the stock before the housing market recovers, or you will be too late to the party.
Options Activity
Najarian mentioned he saw unusual options action in Watson Pharmaceuticals (WPI). He also said that Nvidia (NVDA) is seeing heavy out of the money call buying, which suggest to him the stock is going higher. He disclosed he is long both stocks. 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!