FAST MONEY: TRADERS CALM BUT READY FOR MORE BLOOD

Posted: August 10th, 2007 | Author: Stock Pitcher | Filed under: Fast Money | No Comments »

All the traders were calm except for Jeff Macke.  Eric Bolling said it’s good for the long hall but also pointed out that the BNP Paribas and Goldman Sachs, GS lied about their loan exposure.

As for cutting rates, the market is pricing in an expect cut in September and Macke agreed with Najarian that they shouldn’t cut yet to keep ammo for a bigger disaster.

Everyone says to sell Home Depot, HD because they can’t buy back stock because they can’t sell Home Depot Supply.

Nvidia, NVDA jumps after hours after destorying earnings and Guy Adami reiterated that it’s a buy still but a little expensive.

Cypress Semiconductor, CY – Daniel Loeb – Activist took a position and Najarian owns it as well as another semicondocutor American Seminconductor, AMSC

Water Trade: Edison International, EIX and SJW Corp., SJW was recommended by Eric Bolling as a water trade because of exposure in California.
TECH TRADE: All the traders says buy Tech!  Macke owns Intel, INTC.  Najarian suggested Micron, MU, Cisco, CSCO, Priceline, PCLN, while Yahoo, YHOO and Ebay, EBAY saw a lot of options buying.  While Eric Bolling says by Technology Sector ETF, XLF.

PHARMA TRADE: Pete Najarian says Pharma is good but not bulletproof and suggested Wyeth (WYE), GlaxoSmithKline (GSK)Eli Lilly (LLY). But he said two bulletproof ones are Myriad Genetics (MYGN) or Amylin Pharmaceuticals (AMLN.  Guy Adami say buy GlaxoSmithKline, GSK.
and

SHORT TRADE: Macke says short Sony, SNE and Home Depot, HD.  Eric Bolling says that you should use ETFs for protection like UltraShort S&P 500 ProShares ETF (SDS) and UltraShort QQQ ProShares ETF (QID).  He also suggested buying the CurrencyShares Japanese Yen Trust (FXY) for the carry trade.

INTERVIEW WITH A BEAR:

Dennis Gartman is editor and publisher of The Gartman Letter – a newsletter that Eric Bolling calls a “must-read”.  Gartman basically said that the subprime problem is not going to end soon with most of the resets of the rates and it’ll be 6-12 months for the any recovery.   He is short financials through Financial Select Sector, XLF

WHALE TRADE:

The whale was Warren Buffet and Eric Bolling says his annual letter is must read as well.

Guy Adami explained the five criteria for Buffet’s value style:

-         $5 – $20 billion range
-         consistent earnings power
-         earning good returns on equity
-         little or not debt
-         simple businesses

Pete Najarian says investors should buy Johnson and Johnson (JNJ) and Coke (KO) like Warren.

WEB SPECIAL:

Metals fall and Bolling says don’t buy until the money goes out.  He took a spill on these steep drops.

Macy’s, M and Dillards, DSS fall became of lack of buyout premiums and says that they are sells.

POPS AND DROPS:

DROPS: Family Dollar, FDO – Macke says sell, Americredi, ACF – Adami says sell bad credit, Nike, NKE -Macke says it’s still good, Snap-On, SNA – no comment, BJ Wholesale, BJ – Macke says buy Costco, COST instead.

POP: Vonage, VG – Bolling says sell, Hovananian Enterprise, HOV – Bolling says sell on strength, Skechers, SKX – Najarians says buy Nike instead, Fleetwood, FLE – says it’s madness
FINAL TRADES:

Jeff Macke likes Berkshire Hathaway (BRK) but notes the last two Fridays were horrible so watch out.

Pete Najarian recommends NASDAQ (NDAQ) for its record volume.

Guy Adami pitches GlaxoSmithKline (GSK)

Eric Bolling pitches Hewlett Packard (HPQ).

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