By Stockpickr Staff
Posted on June 17, 2009


The traders of CNBC’s “Fast Money” are worried about President Obama’s attempts to clamp down on Wall Street. Standard & Poor’s has already cut its ratings on 18 banks due to the concern over increased regulation from the Obama administration. Guy Adami thinks that many market players have become complacent and that the coming regulation isn’t priced into the market. He feels the path of least resistance is down for stocks.

Tim Seymour is very concerned about the return of the Glass-Steagall Act that was repealed in 1999 and about what it could do to profitability of insurance companies if the act were reenacted. Joe Terranova isn’t concerned about possible regulatory changes from Obama, but he is worried about the growing deficit and the increased likelihood that the move could create a double-dip recession.

Money will still be made under a new regulatory environment on Wall Street. Adami thinks you can trade the Obama regulations by shorting JPMorgan Chase (JPM). Investors might also want to get long CME Group (CME) and ICE (ICE), according to Jared Levy of Peak 6. He said these firms will benefit from Obama’s move to make credit default swaps and other derivatives products more transparent. These aren’t the only opportunities the crew is discovering in this turbulent market.

The panel recently highlighted trading ideas that play off the aerospace sector, health care stocks and stocks with unusual options activity. Here are some highlights from over the past week as aggregated from the show.

Fast Money’s Pairs Trades: The traders see opportunity in playing pairs trades (short and long two stocks in the same sector) since the market is stuck in a range. On Monday’s “Fast Money” show, Oppenheimer’s Carter Worth told viewers: “Patterns suggest that Daimler’s (DAI) stock looks to be in the throws of a bearish to bullish reversal while Ford’s (F) stock has recovered too steeply.” Fast Money’s Pairs Trades include Accenture (ACN) and UBS AG (UBS).

Fast Money’s Random Stock Picks: The “Fast Money” traders gave out their opinions on quite a few stocks in the past week. Which ones are they watching or playing? On last Friday’s “Fast Money” show, CNBC’s Jim Goldman told viewers: “I wouldn’t be surprised to see some very heavy upside action in Research In Motion (RIMM) by about Tuesday on speculation that the earnings may contain some strong upside surprises.” Fast Money’s Random Stock Picks include DirecTV (DTV) and Marvell Technology Group (MRVL).

Fast Money’s Options Action: The traders have noticed some unusual options activity in a number of stocks. On last Friday’s “Fast Money” show, Pete Najarian told viewers: “The call volume in Tivo (TIVO) suggests to me the stock could move higher.” Fast Money’s Options Action includes Western Digital (WDC).

Fast Money’s Health Care Plays: Health care stocks were running on Monday after Amgen (AMGN) caught an analyst’s upgrade. Should you buy into this sector? On Monday’s “Fast Money” show, Pete Najarian told viewers: “The $65 price target for Amgen, with 10 drugs in the final stage of phase III tests, is probably right.” Fast Money’s Health Care Plays include GlaxoSmithKline (GSK) and Genzyme (GENZ).

Fast Money’s Market Hedge Trades: How should you hedge yourself with the market at seventh-month highs? On last Friday’s “Fast Money” show, Wayne Weddington of Pennoyer International Funds told viewers: “Considering nobody knows if a correction is right around the corner, if you’re going to initiate a long position look at consumer stocks and short the S&P 500 against it.” Fast Money’s Market Hedge Trades include Wal-Mart (WMT) and Family Dollar (FDO).

Fast Money’s Aerospace Stock Plays: Has the bad economy already grounded aerospace stocks or should you expect more weakness going forward? On Monday’s “Fast Money” show, Pete Najarian told viewers: “I like Boeing (BA) if it pulls back to $44.” Fast Money’s Aerospace Stock Plays include Spirit Aero Systems (SPR) and Honeywell (HON).