By Stockpickr Staff
Posted on April 23, 2009
The traders of CNBC’s “Fast Money” think it was prudent for investors to take profits on Monday when you consider the recent strength in the stock market. Guy Adami thinks we are now in no-man’s land, because the S&P 500 didn’t trade up to 900 before it sold off.
Karen Finerman mentioned that a recent New York Times article might have scared investors. She said that if the big banks are forced to convert their TARP capital into common stock, it could lead to a selloff in the banking sector. Finerman also believes that some of the big banks will not pass the street test.
One thing that all of the traders at “Fast Money” agree on is that leading up to the stress test on Friday the market will continue to be extremely volatile. In volatile markets, traders can expect to see large swings both up and down in the most popular stocks. These large moves can create great trading opportunities.
The gang recently highlighted trading ideas that play off of technology stocks, Big Pharma stocks and unusual options activity. Here are some highlights from over the past week as aggregated from the show.
Fast Money’s Rising Stock Stars: In a segment called “Rising Stock Star,” the traders reveal their favorite rising stock. On Monday’s “Fast Money” show, Joe Terranova told viewers: “Oilfield service companies have gone from underperformers to actually looking attractive. I like Natco Group (NTG) in particular because it had a capitulation low back in November and has risen steadily since then.” Fast Money’s Rising Stock Stars include Petrobras Energia (PZE) and Energy Conversion Devices (ENER).
Fast Money’s M&A Plays: The traders see an increase in M&A activity coming for the second quarter. On Tuesday’s “Fast Money” show, Jon Najarian told viewers: “I think it’s going to be a hotbed of it. Countries, as well as companies, could be buyers here.” Fast Money’s M&A Plays include Nucor (NUE) and QLogic (QLGC).
Fast Money’s Options Action: The traders highlighted some unusual options activity in a number of stocks. On last Wednesday’s “Fast Money” show Pete Najarian told viewers: “A spike in the volume of King Pharma (KG) May 10 calls leads me to believe this stock could soon move higher.” Fast Money’s Options Action includes Harley-Davidson (HOG) and Freeport-McMoRan Copper & Gold (FCX).
Fast Money’s Tech Stock Trades: Is now the time to buy technology stocks? On last Thursday’s “Fast Money” show, Pete Najarian told viewers: “If Google (GOOG) drops to $350 then I’d think about buying.” Fast Money’s Tech Stock Trades include Baidu.com (BIDU) and Palm (PALM).
Fast Money’s Big Pharma Trades: Is the strength in Big Pharma coming from cost cutting? On Monday’s “Fast Money” show, Mike Huckman told viewers: “They're all cutting costs on their own or as they merge with each other to position themselves for increasing competition from cheaper generic drugs.” Fast Money’s Big Pharma Trades include Amylin (AMLN) and Amgen (AMGN).
Fast Money’s Trader Radar: In a segment called “Trader Radar,” the crew highlights stocks with unusual volume. On Tuesday’s “Fast Money” show Melissa Lee told viewers: “On the trader radar tonight we’re watching Cheesecake Factory (CAKE). The restaurant chain was among the most active names on the Nasdaq today.” Check out Fast Money’s Trader Radar.
Who's on Stockpickr Answers? Kevin Baker will be on Stockpickr Answers on April 23 to respond to investing and trading questions posed by members of the Stockpickr community. Not a member? Join the Stockpickr community today -- free.
