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"Fast Money" Portfolios of the Week - 5119 views
By Roberto Pedone
Posted on June 24, 2010
The traders of CNBC’s “Fast Money” are concerned about the bearish report out of the Commerce Department that showed that new-home sales cratered 33% to their lowest level since 1963. On Wednesday’s “Halftime Report” segment, Steve Grasso mentioned that with the first-time-home credit now expired, the bearish report shouldn’t surprise anyone. He pointed out that copper, oil and lumber are all down and they’re leading market indicators. Grasso advised viewers to sell any rally because it’s going to be very tough to get a bullish GDP report with a struggling housing market.
Despite the weak housing data, Whitney Tilson said that if you’re short the SPDR S&P Homebuilders ETF (XHB), it might be time to start thinking about covering your position.
Pete Najarian said the market is challenged, with copper struggling at $3, the SPDR S&P 500 ETF (SPY) stalled at its 200-day moving average and the Financial Select Sector SPDR ETF (XLF) also stalled.
Almost all of the traders agreed that any rally that comes off of the Federal Reserve’s interest rate decision should be sold.
The “Fast Money” crew has recently highlighted trading ideas that play off China’s revaluation of the yuan, top energy stocks in the wake of the Gulf crisis and stocks with unusual options activity. Here are some highlights from over the past week as aggregated from the show.
Fast Money’s Yuan Winners & Losers: The crew thinks stocks such as Baidu.com (BIDU) and China Mobile (CHL) could be big winners of China’s decision to revalue their currency, the yuan. On Tuesday’s “Halftime Report” segment, Tim Seymour told viewers: “If the commodities play is too volatile for you, on a related note, Chinese consumers are experiencing more purchasing power and that should benefit SINA (SINA) and Shanda Interactive Entertainment (SNDA) and other companies tethered to China’s consumer.” The Fast Money’s Yuan Winners & Losers portfolio includes Wal-Mart Stores (WMT) and Intel (INTC).
Fast Money’s Risky Broker Stocks: The traders think a handful of brokers, including Morgan Stanley (MS) and Charles Schwab (SCHW), could sell off after financial reform. On Monday’s “Fast Money” show, Ticonderoga Securities analyst Doug Sipkin told viewers: “I don’t think the Street has priced in an amendment which compels brokers who offer financial advice to adhere to a higher client-care stand. This new legislation could force them to operate under a much higher fiduciary standard.” The Fast Money’s Risky Broker Stocks portfolio includes TD Ameritrade (AMTD) and BlackRock (BLK).
Fast Money’s Top Energy Stock Trades: The traders see opportunity in playing energy stocks such as BP (BP) and Tesoro (TSO) in the wake of the Gulf disaster. On last Friday’s “Fast Money” show, Karen Finerman told viewers: “If you’re looking for a play, I’d look at tankers such as Frontline (FRO) or Teekay (TK). If less oil comes out of the Gulf, then the journey to get that oil to the U.S. will be longer.” The Fast Money’s Top Energy Stock Trades portfolio includes Occidental Petroleum (OXY) and Transocean (RIG).
Fast Money’s Options Action: The traders highlighted some options trades and unusual options activity in names such as Apple (AAPL) and Boston Properties (BXP). On Wednesday’s “Halftime Report” segment, Pete Najarian told viewers: “I’m seeing a lot of call-buying on Research In Motion (RIMM), and it could suggest a modest bullish bias. If you share that outlook, look at a call spread or go one month against another — sell the July to buy the August.” The Fast Money’s Options Action portfolio includes OfficeMax (OMX) and Anadarko Petroleum (APC).
Fast Money’s Top Bank Reform Trades: The crew knows just how to trade financial regulation. On Monday’s “Fast Money” show, Joe Terranova told viewers: “I don’t think fin reg will have a terribly negative impact on MasterCard (MA) or Visa (V). I’d stay with both names.” The Fast Money’s Top Bank Reform Trades portfolio includes Citigroup (C) and Bank of America (BAC).