Some of the traders of CNBC’s “Fast Money” are strongly against the idea of nationalizing the big banks like Citigroup (C) and Bank of America (BAC). Those panel members aren’t alone with their views. Jim Cramer, the host of CNBC’s “Mad Money,” is also in the same camp.
In a recent video, Cramer said the government would have to put in $7 trillion to $8 trillion dollars and it will collapse the financial system, cause massive unemployment, wipe out credit cards and eliminate life and property insurance.
The “Fast Money” traders believe the market rally on Tuesday was sparked by large short covering after Ben Bernanke made statements that backed away from the idea of nationalizing the banks. As the crew waits to hear the final details of the Obama administration’s bank plan they continue to find opportunities in the market.
The gang recently highlighted trading ideas that play off of stocks with extremely cheap valuations, retail value stocks and unusual options activity. Here are some highlights from over the past week as aggregated from the show.
Fast Money’s Mouth-Watering Value Stocks: The traders recommended a number of stocks trading at mouth watering valuations. On Tuesday’s “Fast Money” show, Tim Seymour told viewers: “Lockheed Martin (LMT) has been beaten down because of the expectations that the U.S. government will stop spending on defense. The reality is that Lockheed has a major global market and it’s cheap.” Fast Money’s Mouth-Watering Value Stocks include XTO Energy (XTO) and Altria (MO).
Fast Money’s Four Horseman of the Financials: The traders think you should only look at the “four horseman” of the financial sector if you want to play the space. On Tuesday’s “Fast Money” show, Pete Najarian told viewers: “I thought Mr. Bernanke exuded an impressive degree of confidence. I added to my position in Morgan Stanley (MS) today because the stock was so beat up.” Fast Money’s Four Horseman of the Financials include Goldman Sachs Group (GS) and MasterCard (MA).
Fast Money’s Trend Trades With Dennis Gartman: What are the trends you should be looking at for the gold and retail sectors? On Monday’s “Fast Money” show, Dennis Gartman told viewer: “There doesn’t seem to be much panic in gold. I think it’s more likely it goes higher than lower, and I’d play the miners rather than the spot price of gold.” Fast Money’s Trend Trades With Dennis Gartman include Family Dollar (FDO) Market Vectors Gold Miners (GDX).
Fast Money’s Value Buys in Retail: The traders are finding plenty of value in the retail complex. On last Friday’s “Fast Money” show, Guy Adami told viewers: “I like Home Depot (HD) for its valuation and balance sheet.” Fast Money’s Value Buys in Retail include Baidu.com (BIDU) and Green Mountain Coffee Roasters (GMCR).
Fast Money’s Options Activity & Trades: The traders highlighted some unusual options activity and some options trades on a number of stocks. On Monday’s “Fast Money” show, Pete Najarian told viewers: “The March 7 puts were trading robustly. That suggests investors are looking for a little more downside in General Electric (GE).” Fast Money’s Options Activity & Trades include Genentech (DNA) and U.S. Steel (X).
Fast Money’s Trader Radar: In a segment called “Trader Radar,” the crew highlights stocks with unusual volume. On Tuesday’s “Fast Money” show, Dylan Ratigan told viewers: “On the trader radar tonight we’re watching RadioShack (RSH). The electronics chain was among the most active names on the NYSE today.” Check out Fast Money’s Trader Radar.
