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"Fast Money" Portfolios of the Week - 7128 views
By Roberto Pedone
Posted on June 3, 2010
The traders of CNBC’s “Fast Money” are worried about the ripple effect from the gulf disaster across the entire stock market. On Tuesday’s “Fast Money” TV show, Joe Terranova told viewers that the S&P 500 fell in large part due to the dramatic selling in the energy space. He said this action is troubling because nobody knows when we will see a bottom in energy stocks.
Tim Seymour mentioned a close below 1084 on the S&P could signal a technical move down to 1044. He pointed out that the fundamentals are a problem and aren’t any better than the techncials -- we’ve got tension in the middle east, a weak PMI number out of China and weak data out of Europe.
Brian Kelly of Kanundrum warned viewers that if we don’t hold 1050 on the S&P, the market could trade much lower. But he said that if the 1050 area holds, we could get a chance for a June rally.
Terranova advised viewers to stay defensive in this environment with slow growth names such as Johnson & Johnson (JNJ) and IBM (IBM). He said investors should remove the go-go names from their shopping lists.
The “Fast Money” crew has recently highlighted trading ideas that play off the oil complex, defensive stock plays and risky U.S.-based stocks to avoid due to the European debt crisis. Here are some highlights from over the past week as aggregated from the show.
Fast Money’s Risky U.S.-Based Stocks: The crew is concerned about companies that generate a large percentage of their revenue from Europe. On Tuesday’s “Halftime Report” segment, Patty Edwards of Storehouse told viewers: “Guess (GES) already took numbers down because of Europe and I think more of the same is to come. I would keep an eye on companies that generate more than 30% of their revenue from Europe. That includes Electronic Arts (ERTS) and McDonald’s (MCD). The Fast Money’s Risky U.S.-Based Stocks portfolio includes Ford Motor (F) and Itron (ITRI).
Fast Money’s Defensive Stock Plays: The traders think it’s time to get into defensive stocks such as Campbell Soup (CPB) and Wal-Mart Stores (WMT). On last Friday’s “Fast Money” show, Anthony Scaramucci of Skybridge told viewers: “It’s been a very sloppy market and hedge funds are getting defensive. If you’re looking for ideas look at Pfizer (PFE), Merck (MRK), or Altria Group (MO) for their dividend yield.” The Fast Money’s Defensive Stock Plays portfolio includes Bristol-Myers (BMY) and Kraft Foods (KFT).
Fast Money’s Oil Trade Stocks: Considering all of the developments in the gulf from the oil spill, how should you be positioned now in the oil sector? On last Thursday’s “Fast Money” show, Tim Seymour told viewers: “I don’t agree with analysts who are saying the worst is priced into BP (BP). Public anger is growing. Politically I expect BP to suffer as much as any company has ever suffered. I wouldn’t touch this stock.” The Fast Money’s Oil Trade Stocks portfolio includes Oceaneering International (OII) and Canadian Natural Resource (CNQ).
Fast Money’s Trading-the-Globe Plays: The traders see opportunity in trading emerging-market stocks such as China Life Insurance (LFC) and Banco Bradesco (BBD) in the wake of the gulf oil spill. On last Friday’s “Fast Money” show, Richard Kang of Emerging Global Advisors told viewers: “Energy and financial stocks are in the most pain now and that presents some buys, especially oil-related trades, as the price of crude going down usually means that a bounce back is around the corner.” The Fast Money’s Trading-the-Globe Plays portfolio includes PetroChina (PTR) and Petrobras (PBR).
Fast Money’s May Worst & Best Trades: The big winners and losers from May, such as Cisco Systems (CSCO) down 13%, and SanDisk (SNDK) up 16%, are on the crew’s radar. On last Friday’s “Fast Money” show, Guy Adami told viewers: “I love the name and I love the story but don’t get into NetApp (NTAP) now. It’s rich here. If you’re in it, take profits and if it trades down to $34 then be a buyer.” The Fast Money’s May Worst & Best Trades portfolio includes Sprint Nextel (S) and Citigroup (C).
Fast Money’s Broadband Stock Plays: The traders spoke with FCC Chairman Julius Genachowski about the future of broadband. He said more needs to be down to increase competition in set top boxes for cable TV. On Wednesday’s “Fast Money” show, Brian Kelly, president and founder of Kanundrum Capital, told viewers: “VMware (VMW) is perfectly positioned to muddle through a broadband crunch by making due with what you have.” The Fast Money’s Broadband Stock Plays portfolio includes Akamai Technologies (AKAM) and Juniper Networks (JNPR).