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'Fast Money' Portfolios of the Week - 21159 views
The traders of CNBC’s “Fast Money” believe that President Obama’s budget plan is the reason that stocks in the U.S. have been dropping precipitously. Since Obama issued his budget plans last Thursday, the S&P 500 has dropped 8.4%. The president’s budget proposal will swell the budget deficit to $1.8 trillion and expand the debt-to-GDP ratio to around 60%, the highest level since the 1950s.
The panel is also worried that Obama is spinning the facts after he came out and said that valuations of stocks are attractive. At a press conference on Tuesday, Obama said that “buying stocks is a potentially good deal if you’ve got a long-term perspective on it.” The crew questioned how Obama could possibly value stocks.
Despite the perceived notion on Wall Street that Obama is bad for stocks, the crew is starting to find reason to take the other side of the trade and fade the pessimists. Some of those reasons include cheap valuations, a market trading on things that aren’t fundamentals and the large amounts of cash on the sidelines.
The gang recently highlighted trading ideas that play off of precious metals stocks, retail value stocks and unusual options activity. Here are some highlights from over the past week as aggregated from the show.
Fast Money’s Short-Squeeze Trades: The traders see some potential short squeezes setting up. On Monday’s “Fast Money” show, Jon Najarian told viewers: “Keep an eye on Vale (RIO). The short interest in this stock is something like 35% and I’d be on the other side of that.” Fast Money’s Short-Squeeze Trades include Dell (DELL).
Fast Money’s Precious-Metals Trades: The traders see opportunity in the gold, copper and silver sectors. On last Thursday’s “Fast Money” show, Joe Terranova told viewers: “Copper has remained resilient and silver has hung in there as well. If you want to play copper buy Freeport McMoRan (FCX).” Fast Money’s Precious-Metals Trades include Gold Fields (GFI) and Teck Cominco (TCK).
Fast Money’s Options Activity & Trades: The traders highlighted some unusual options activity and some option trades on a number of names. On Tuesday’s “Fast Money” show, Pete Najarian told viewers: “Options action suggests to me that Blackstone Group (BX) could start turning during the next quarter.” Fast Money’s Options Activity & Trades include Ivanhoe Mines (IVN) and Mosaic (MOS).
Fast Money’s Health Care Stock Picks: Are healthcare stocks safe now that President Obama has unveiled his plans for the sector? On Monday’s “Fast Money” show, CNBC’s Mike Huckman told viewers: “Keep an eye on Genentech (DNA). If you're willing to take a risk on data, the results on Avastin are due soon. If they’re strong the stock could go to $100 and maybe even put it out of Roche’s reach in their acquisition attempt.” Fast Money’s Health Care Stock Picks include Dendreon (DNDN) UnitedHealth Group (UNH).
Fast Money’s Cheap Stocks: The traders are finding plenty of stocks trading at cheap valuations. On Tuesday’s “Fast Money” show, Tim Seymour told viewers: “If you’re trying to find out if a company is cheap look at cash flow. I like Turkcell (TKC) for that very reason.” Fast Money’s Cheap Stocks include Apple (AAPL) and Northern Trust (NTRS).
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 Wendy’s Arby’s Group (WEN). The fast food chain was among the most active names on the NYSE today.” Check out Fast Money’s Trader Radar.
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P.S. Where is Jim Cramer putting his own money? Take a free peek at his personal portfolio to see all his buys and sells by clicking here. When you do, Jim will also send you exclusive email alerts telling you everything he’s about to add to or shed from his Action Alerts PLUS portfolio -- before he makes his trade.