FAST MONEY: TRADERS SAYS MORE BLOOD TO COME! SHORT PICKS MOSTLY

Posted: August 16th, 2007 | Author: Stock Pitcher | Filed under: Fast Money | No Comments »

 

The bloodbath continues as today the S&P 500 has just gotten into the red.  Jeff Macke says that you should sell until you can sleep because this is a real problem.  Guy Adami says there is a lot more downside.  Time Seymour, the Ambassador says that stocks will still suffer.  Pete Najarian says the volatility index hit 31 and the put activity in Countrywide Financial (CFC) was insane and he is short CFC. 

 

Financial Trade:

Guy Adami points out that Buffet bought Bank of America (BAC) and there may be some value in financials.  But Macke points out there hasn’t been reductions in earnings yet and Goldman Sachs (GS) with a PE of 8 is wrong and needs to be reevaluated.

 

Tim Seymour was actually buying something but says that a dollar play would help you.  Seymour says that you should look into ETFs FXC which is a Canadian dollar ETF. 

 

But Jeff Macke says just sell it.  Sell it.  It sounds very scary now. 

 

Deere (DE) – is running up; part of the agriculture trade.  Guy says there is opportunity but it is a tricky market right now. 

 

Hewlett Packard (HPQ) Trade – There is a lot of optimism and Jim Goldman, CNBC’s Silcon Valley Bureau Chief says he owns this and that cost cutting and operating margins may move Hewlett Packard but it will all depend on outlook. 

 

The Materials and Finance sectors were the worst performing.  But materials were a huge surprise but Tim Seymour said that all the trends are challenged but not out.  Guy Adami says there is a capitulation so there may be a buying opportunity soon.  US Steel (X) went from $127 now trading at $80.  Jeff Macke says that all the trades were crowded and all the funds were dropping it and everything else.  He says don’t confuse the stock with the market meaning that the stock is good.  20 to 1 put to call ratio in materials according to Najarian. 

 

China Mobile (CHL) – all the traders says that it’s a good trade because mobile markets are still growing.  Guy Adami says there is still more growth and says it’s a great place to park your money.  Tim Seymour says mobile is the best emerging market play!

 

PetSmart (PETM) beat the market and the CEO says that they are riding the wave of the “humanization” of pets along with services that differentiate themselves.  Macke, Najarian, Adami, and Seymour all say it’s a good buy. 

 

DROPS

Lehman (LEH) – Adami says sell

Emerging Market ETF (EEM) – Seymour says Short 

AMR Corp (AMR) – Najarian says it’s going lower

KKR Financial (KFN) – Mortgage exposure – Adami says it’s a pop tomorrow though.

Crocs (CROX) – Seymour says it’s not right for men not from Sweden to wear clogs so it’s a sell.  A little humor in the insanity. 

 

 

POPS

Thornburg Mortgage (TMA) – Najarian says it’s a fake pop – we’ll see.

H.J. Heinz (HNZ) – Seymour says it’s a buy – Note Nelson Petz has a position

VMWare (VMW) – Adami says don’t chase it but watch it.

New York Times (NYT) – Macke says still a sell.  

 

Final Trade:

Jeff Macke says don’t buy anything. 

Najarian Short Etrade Financial (ETFC)

Adami buy more DOG

Seymour says buy MBT

 

Countrywide Financial, CFC, Goldman Sachs, GS, Hewlett Packard, HPQ, Deere, DE, US Steel, X, China Mobile, CHL, China Unicom, CHU, Thornburg Mortgage, TMA, H.J. Heinz, HNZ, VMWare, VMW, New York Times, NYT, Crocs, CROX, KKR Financial, KFN, AMR Corp, AMR, Emerging Market ETF, EEM, Lehman, LEH, PetSmart, PETM,  Etrade Financial, ETFC

 

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