FAST MONEY: RATE CUT TRADES AND FINANCIAL OPTIMISM

Posted: August 22nd, 2007 | Author: Stock Pitcher | Filed under: Fast Money | No Comments »

First words from the Fast Money Traders: Volatility is going down according to Pete Najarian. Constance Hunter said that she would be a buyer. Adami says everything is just resting.

Pete Najarian says that now that everything is becoming transparent, banks are going up like Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C) are close to buys.

TECH TRADE: Najarian recommends EMC (EMC) who is breaking new highs of recent while Adami says Network Appliances (NTAP) is the one to watch. Contact Hunter says Apple (AAPL) is looking strong. Macke says Intel (INTC) is the real one.

Target (TGT) had good earnings but Macke says specialty retailers like Zumiez (ZUMZ) and Gamestop (GME) are the trade and should start to take some off basically sell into earnings. Hunter says that based data that wages were up 7% and will support the retail market.

MEDTRONIC TRADE: Najarian says Medtronic (MDT) is a buy on it’s afterhours weeknes.

DELL TRADE: Dell has problems with production. Sounds like a sell.

Argriculture TRADE:
Hunter says that this has nothing to do with the subprime problem and says they are oversold. Buy Potash (POT) and Agrium (AGU).

CHINA INFLATION TRADE:
Guy Adami says that the “shoe will fall” meaning that it will fall sometime. Hunter recommended iShares MSCI Hong Kong (EWH) as a trade because China will let money flow to the Hong Kong market. Huge money flow…I smell MONEY! Najarian says just own China into Beijing Olympics

RATE CUT TRADE:
Dividend ETF (DVJ), Kraft (KFT), and Johnson and Johnson (JNJ) was recommended by Najarian. Adami says Goldman Sachs (GS) to be bought now. Widsom Tree International Finance (DRF) should be the play according to Hunter because of weakness in the dollar. Jeff Macke says screw the financials because the rate cuts are priced in already!

TARGET BAROMETER TRADE:
Jeff Macke says the numbers were fine and Target says the consumer is just fine which is backed up by Hunter’s data about rising wages.

OIL TRADE: Drops 12% below $70.
Najarian says the energy is going further down and Energy SPR (XLE) is coming down. All the oil stocks are seeing a lot of put buying while airlines are a good play. While Adami says any event will push oil back up and he like Exxon (XOM). Macke says sell those airline stocks.

Dick’s Sporting Good (DKS) – CEO Ed Stack comes on the show as it jumps after raising earnings forecast. Stack claims that he can grow with a new golf chain. Hunter doesn’t like it but the guys, Adami, Najarian, and Macke says BUY IT!

POPS:
Apple (AAPL) – Adami says don’t buy yet.
Synchronoss (SNCR) – Najarian says stay away for now.
RealNetworks (RNWK) – Macke says sell because they can’t take down iTune.
Contential Airlines (CAL) – Hunters says it’s just short covers – she says SELL
VMware (VMW) – Adami says it’s good but don’t chase it.
Take Two Interactive (TTWO) Macke says sell it – it has no good games.
Costco (COST) – Mackes says it’s still a buy
Starwood (HOT) – Najarian says options activity says to watch it.
Amazon.com (AMZN) – Jeff Macke says it’s just shorts getting killed.

DROPS:
Toll Brothers (TOL) – Adami used the work “SUCK” that is self explanatory.
Hess Corp (HES) Energy dropping because of oil – Hunting
Infosys (INFY) drops because of banks weakness because they do IT for them. Hunter says buying opportunity.
Saks (SKS) – Adami says it’s a sell

iShares MSCI Swedent (EWD) – Hunter says go long. Macke says go long too.

FINAL TRADES:
Macke says sell TTWO
Adami says buy Target (TGT)
HXM Hunter Buy Mexcio home builder, Homex (HXM)
Najarian says buy Under Armour (UA)
UST (UST) – Najarian says sell because of competition

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