The traders of CNBC’s “Fast Money” were well-prepared for the market rally. The crew had on notable market bears recently, such as Dr. Doom (aka Marc Faber) and TheStreet.com columnist Doug Kass, who both predicted that the market could be approaching a tradable bottom. It turns out that both were right; on Tuesday, the Dow Jones Industrial Average soared 379 points, and the Nasdaq jumped 89 points.
The panel explained that the rally was fueled by rumors of the reinstatement of the uptick rule and the potential loosening of mark-to-market accounting rules at a congressional meeting later this week. The traders aren’t sure how long the rally will last, but they are prepared with plenty of ideas on how to play it if it has legs.
The gang recently highlighted trading ideas that play off of high-quality companies, stocks that could benefit from demand in China and stocks to buy for the market bounce. Here are some highlights from over the past week as aggregated from the show.
Fast Money’s China Plays: Should investors look to buy stocks that could benefit directly from China? On Monday’s “Fast Money” show, Tim Seymour told viewers: “I’d keep an eye on China. Auto sales in that nation are up 25% last month and that could make metals prices climb.” Fast Money’s China Plays include BHP Billiton (BHP) and Rio Tinto (RTP).
Dennis Gartman’s Blue-Chip Stock Picks: Are some stocks trading at fire sale prices? Strategic investor Dennis Gartman thinks so. On last Friday’s “Fast Money” show, Gartman told viewers: “Buying stocks these days is almost like shopping at a five and dime. In other words, they're real bargains out there. This week I started buying stocks.” Dennis Gartman’s Blue-Chip Stock Picks include Chesapeake Energy (CHK) and Imperial Sugar (IPSU).
Fast Money’s Best Market-Bounce Plays: The traders highlighted some ideas for playing a market recovery. On Tuesday’s “Fast Money” show, Tim Seymour told viewers: “If you adjust for inflation commodities are cheaper now than they were 20 years ago. I think the play is copper and I’m playing it with Teck Cominco (TCK), which is based in Peru.” Fast Money’s Best Market-Bounce Plays include Hess (HES) and Wynn Resorts (WYNN).
Fast Money’s Quality Companies: The traders believe that in tough markets you have to adjust your trading strategy. On Thursday’s “Fast Money” show, Joe Terranova told viewer: “I have accepted the fact that the down market is going to be around for awhile and I am looking for some quality companies to invest in.” Fast Money’s Quality Companies include Freeport McMoRan (FCX) Intel (INTC).
Fast Money’s Plays Off Exxon’s Massive Spending: Exxon Mobil (XOM) plans to spend $29 billion in 2009 to keep up with demand. How should you play it? On last Friday’s “Fast Money” show, Guy Adami told viewers: “Another company to watch in the space is URS Corp (URS).” Fast Money’s Plays Off Exxon’s Massive Spending include McDermott (MDR).
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 Dick’s Sporting Goods (DKS). The largest publicly traded U.S. athletic-equipment chain was among the most active names on the NYSE today.” Check out Fast Money’s Trader Radar.
Who’s on Stockpickr Answers? http://www.thestreet.com/search/result.html?topicSearch=Jonathan+Heller " target="_blank">Jonathan Heller will be on Stockpickr Answers on March 12 to respond to investing and trading questions posed by members of the Stockpickr community. Not a member? Join the Stockpickr community today -- free.
P.S. Where is 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.
