The traders of CNBC’s “Fast Money” are ready to attack the markets with a new outlook, following the U.S. government’s latest attempt to stimulate the economy. On Tuesday, the central bank reduced the federal funds rate to a range of zero to 0.25%. The Fed also announced that it plans to use other tools, such as buying up mortgage-backed securities and possibly buying long-term Treasuries. Many analysts have said that the Fed’s decision will go down in history.
It’s becoming clear to the “Fast Money” traders that the U.S. government is going to do whatever it takes to save the economy and the stock market. The crew might not like the steps the Fed has taken, but regardless, the panel is ready to highlight the sectors that could work in a low-interest rate environment.
The gang recently highlighted trading ideas that play off the reflation trade, tech stocks that could work off a weak dollar and stocks that could benefit from Obama’s energy initiatives. Here are some highlights from over the past week as aggregated from the show.
Fast Money’s Obama Energy Trade: President-elect Barrack Obama named his top energy and environment officials on Monday. Is there a trade off this? On Monday’s “Fast Money” show, Tim Seymour told viewers: “Even with low prices at the pump he still expects a push toward alternative energy under the new administration.” Fast Money’s Obama Energy Trade includes Trina Solar (TSL) and Arch Coal (ACI).
Fast Money’s Big-Yielding Dividend Stocks: The crew thinks it’s time to play stocks with high-dividend yields. On last Wednesday’s “Fast Money” show, Guy Adami told viewers: “I’d go to the utilities. PG&E (PCG) has been crushed and it seems to have bottomed out.” Fast Money’s Big-Yielding Dividend Stocks include Harley-Davidson (HOG) and Philip Morris International (PM).
Fast Money’s Reflation Trade: The traders see opportunity in the “reflation trade” now that the Fed has lowered rates to zero. On Tuesday’s “Fast Money” show, Tim Seymour told viewers: "I think the commodity play is bullish crude. I am a buyer of oil, as well as emerging market commodities companies." Fast Money’s Reflation Trade includes Silver Wheaton (SLW) and Gold Fields (GFI).
Fast Money’s Tech Stock Plays: Is it time to buy technology stocks? On last Friday’s “Fast Money” show, Guy Adami told viewers: “The tailwinds for tech last year were the weaker dollar. And the dollar moved lower this week for the first time in a while. I think currency could be driving technology shares right now.” Fast Money’s Tech Stock Plays include Apple (AAPL) and Cree (CREE).
Fast Money’s Stocks You Should Sell: Some stocks have experienced big swings in this volatile stock market. Which stocks should investors look to take profits on? On last Friday’s “Fast Money” show, Pete Najarian told viewers: “I think there’s still upside in Freeport-McMoRan (FCX), but that’s another name which you’ve got to take some off the table.” Fast Money’s Stocks You Should Sell include Diana Shipping (DSX) and United Health Group (UNH).
Fast Money’s Trader Radar: In a segment called “Trader Radar,” the crew highlights stocks with unusual volume. On Monday’s “Fast Money” show, Dylan Ratigan told viewers: “On the trader radar tonight we’re watching MGM Mirage (MGM). The casino company was among the most active names on the NYSE Monday. Check out Fast Money’s Trader Radar.
Posted on Dec. 17, 2008
