The traders of CNBC’s “Fast Money” are constantly searching for the next big idea or trend in the markets that has the potential to make their viewers some meaningful profits.

The crew doesn’t care if the idea is to go long or to short a stock, and they don’t care what industry the opportunity comes out of. The traders have no bias, other than to make their fans the most money possible and keep the show entertaining and educational.

The gang recently highlighted trading ideas that play off of bullish action in the biotech sector, coal and steel stocks and bank stocks. Here are some highlights from over the past week as aggregated from the show.

Fast Money’s Bank Trade: The traders see huge opportunity in the banking sector. On last Thursday’s “Fast Money” show, Guy Adami told viewers: “In the financial services sector I’d look at Merrill Lynch (MER) for a short-term trade.” Fast Money’s Bank Trade includes Washington Mutual (WM) and Barclays (BCS).

Fast Money’s Coal & Steel Stock Picks: The steel and coal sectors could be poised for a large move higher. On last Thursday’s “Fast Money” show, Guy Adami told viewers: “In the space, I think coal and steel are the commodities to watch.” Fast Money’s Coal & Steel Stock Picks include U.S. Steel (X) and Alpha Natural Resources (ANR).

Fast Money’s Biotech Trades & Options Action: The traders noticed some bullish trading and options activity in a number of biotech stocks. On last Friday’s “Fast Money” show, Guy Adami told viewers: “I think the best play here is Celgene (CELG). They could be a takeover target.” Fast Money’s Biotech Trades & Options Action includes Amylin (AMLN) and Onyx (ONXX).

Fast Money’s Consumer Discretionary Trade: The traders see opportunity in buying consumer discretionary stocks now that oil has dropped dramatically in price. On Tuesday’s “Fast Money” show, Jeff Macke told viewers: “I like Wal-Mart (WMT) and Costco (COST).” Fast Money’s Consumer Discretionary Trade includes Abercrombie & Fitch (ANF) and Tiffany (TIF).

Fast Money’s Trader Radar: In a segment called “Trader Radar,” the crew highlights stocks with unusual volume that are lighting up screens across Wall Street. On Monday’s “Fast Money” show, Dylan Ratigan told viewers: “On the trader radar tonight we’re watching Motorola (MOT). The shares jumped the most in four years on optimism that new management will break-up the company. Check out Fast Money’s Trader Radar.

Fast Money’s Bad Company Good Stock: Sometimes poorly run companies can turn out to be great stocks. On Tuesday’s “Fast Money” show, Tim Seymour told viewers: “The costs are going down because if you look at the output of cars out of the United States, roughly 40% are based upon a union cost basis which fortunately has come down markedly over the last year as Ford (F) starts to write down the UAW liabilities.” Fast Money’s Bad Company Good Stock portfolio includes Microsoft (MSFT).


A note from James Altucher:

Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to a theme but also offer significant analysis as to why the stocks are cheap.

Here are some examples:

Stocks related to drilling the Marcellus Shale

MLPS with yields above 7%

Microcaps trading for less than tangible book

Stocks that do well after Hurricanes

Here's the challenge: Build a portfolio at Stockpickr.com with great analysis, and send me the link. Each great portfolio (with analysis) will get posted on TheStreet.com with your byline (as a "Stockpickr Guest Columnist") and will be included in my email I send to Jim and the other
hedge fund managers on my list.


Posted on Aug. 6, 2008