By Stockpickr Staff
Updated at 1:52 p.m. on June 25, 2009
The traders of CNBC’s “Fast Money” have been warning investors recently about the strong possibility of a correction in the stock market. Guy Adami, for instance, has been pounding the desk for days about warning signs that he's considered very bearish. He told viewers on a number of occasions that the path of least resistance appears to be lower. He was especially concerned about the fact that the S&P 500 has traded up to the 200-day moving average, a key technical level, a couple of times and failed.
Jon Najarian has mentioned he is looking for a 5% to 10% correction in the markets. Joe Terranvoa thinks the weak-dollar trade is making a comeback and the resource names could benefit. He also told viewers he bought some Research In Motion (RIMM) on Tuesday because he feels a sector rotation into tech is making a comeback. Tim Seymour said that if the S&P 500 drops to 850, it will mark a 10% correction. However, he thinks the market is stuck in a range and he doesn’t see more downside from current levels.
The “Fast Money” crew has recently highlighted trading ideas that play off the solar sector, six stocks for a market correction and some short trade ideas. Here are some highlights from over the past week as aggregated from the show.
Fast Money’s 6 Picks for a Market Correction: Which stocks should investors look to play now that the market is experiencing a correction? On Monday’s “Fast Money” show, Guy Adami told viewers: “If JPMorgan Chase (JPM) gets down to $28 a share, I think it’s interesting.” Fast Money’s 6 Picks for a Market Correction include Intrepid Potash (IPI) and Freeport McMoRan (FCX).
Fast Money’s Global Broadband Plays: According to the Web site TelecomAsia.net, Asian customers now account for 45% of all broadband connections. Considering this explosive growth, how should you trade the trend? On last Wednesday’s “Fast Money” show, Jon Najarian told viewers: “I think Cisco Systems (CSCO) wins for supplying servers and routers.” Fast Money’s Global Broadband Plays include Shanda Interactive (SNDA) and China Unicom (CHU).
Fast Money’s Rising Stock Stars: In a segment called “Rising Stock Star,” the traders reveal their favorite rising stocks. On last Wednesday’s “Fast Money” show, Tim Healy, CEO of EnerNOC (ENOC), told viewers that his company is in the business of smart grid management and his firm helps clients cut their electricity use during peak demand periods. Fast Money’s Rising Stock Stars include FLIR Systems (FLIR) and Palm (PALM).
Fast Money’s Solar Trades: The solar sector is in its infancy, but the sector remains volatile. The traders offered up some ways to play this difficult space. On last Friday’s “Fast Money” show, options trader Jared Levy told viewers: “I like First Solar (FSLR). It’s a best-of-breed play, and they’ve got all their ducks in a row. I’m a buyer.” Fast Money’s Solar Trades include Suntech (STP).
Fast Money’s Short Trade Ideas: With the market pulling back from seven-month highs, is it time to take some short positions? On last Thursday’s “Fast Money” show, Pip Coburn of Coburn Ventures told viewers: “I am short Best Buy (BBY) because big box consumer electronics outfits are on the wane. Consumers are much smarter about shopping around for electronic products.” Fast Money’s Short Trade Ideas include Dell (DELL) and Motorola (MOT).
Fast Money’s South Africa Stock Plays: South Africa’s government has earmarked billions to a major infrastructure buildout ahead of the 2010 world cup. How can you play the largest economy in Africa? On Tuesday’s “Fast Money” show, Tim Seymour told viewers: “I suggest a long position in the iShares MSCI South Africa Index (EZA).” Fast Money’s South Africa Stock Plays include Gold Fields (GFI).
