FAST MONEY: TRADERS SOUND A LITTLE SCARED OF RISK

Posted: August 21st, 2007 | Author: Stock Pitcher | Filed under: Fast Money | No Comments »

The RECAP:

The traders all seem a little scared of the market as they see that the treasury market is showing that the problems with credit is not being solved by the recent Fed move and most of them suggested safe names in railroad and tech. There wasn’t much in suggestions to buy and they noted that volume was light today. Volatility remained high and that was a bad sign. A good indicator for the economy is the reports and guidance for all the retailers this week.

WORD on the STREET:

The market moved higher on Bernanke-Dodd meeting. Najarian noted that railroad stocks moved. Union Pacific (UNP) and Burlington Norfolk (BNI) were noted. Stacey Gilbert, “The Hammer” said that everyone is tired but Guy Adami says the market looks encouraging. Eric Bolling is gone? I’m not sure. Anyone has news?

Najarian says financials are not on a bottom yet. Guy Adami says Berkshire Hathaway (BRKA) is at a 52 week high and you should buy what Buffet is buying like Bank of America (BAC). Macke again was skeptical of the market.

Chip trades were mentioned. Stacey Gilbert says tech is the safe haven as well as railroads.

Capital One (COF) closed their Alt-A mortgage division, GreenPoint Mortgage and Guy Adami says that’s it’s going to be a problem for all of the financial market but everything is priced in. While Najarian and Gilbert says that the unknown is becoming a huge issue. Najarian and Gilbert are options specialist.

Lowe’s (LOW) moved up on earnings and guided down but does it mean it’s better; Jeff Macke says no! It’s just bouncing off a low and according to Dylan Ratigan “because they didn’t suck that bad.”

Freeport McMoran (FCX): Gilbert and Adami says it’s a buy here! While Macke says no!

Fluor (FLR) – moves up on 2B Kuwait contract and some more contracts. Adami says own it!

Medtronic (MDT) earnings tomorrow? Buy or no? Najarian expects a good report but no options movement.
GameStop (GME) earnings tomorrow? Gilbert says there is options activity for a 10 percent move expect.
PetroChina (PTR) – Dropped 16% and Adami says it’s a buy because Buffet owns it too.
Goldman Sachs (GS) and Mastercard (MA) and Alcoa (AA) – there were lots of options activity saying that there is upside
Nasdaq (NDAQ) they are selling their share of London Stock Exchange and going to buy back stock and focus on the OMX

Treasury Yields had their biggest moves: Flight to quality suggest that according to Gilbert that the short term market says that everyone is scared. Macke says that financials are in trouble and there is a panic. Adami suggested you need to pick good companies like Juniper (JNPR) and Flour (FLR) while Najarian agrees that you have to be selective to dividend like railroads and pharma.

Retail Report: The biggest scare would be if the consumer stopped spending. Target is reporting tomorrow but Jeff Macke, the retail report says that it’s not about the numbers but it’s about the guidance. He says Target (TGT) is the one to watch. Zumiez (ZUMZ), Dicks Sporting (DKS), Gymboree (GYMB) and other specialty stores are doing well but should show how strong retailers will be.

Gadget Trade: Research in Motion (RIMM), Garmin (GRMN) and Palm (PALM) all moved up. Najarian says that RIMM has momentum and Nokia (NOK) is good as well. Macke says Palm is dead. Everyone said not to buy it.

POPS: First Solar (FSLR) – Najarian says it’s a buy , Dendreon (DNDN) – Najarian says it’s not a buy yet still risky, Smurfit-Stone (SSCC) – Adami says its hard for him to own it yet even though it recovered. Baidu.com (BIDU) – Najarian says it’s good. Tribune (TRB) moves up on closing arbitrage.

DROPS: Lehaman Bros (LEH) – Adami says there are problems don’t buy it. DirectTV (DTV) – Mack says still a sell, Moodys (MC) – Gilbert says too risky because they are related to subprime, Nordstrom (JWN) – Macke says high end retailers are weak too.

FINAL TRADES:

Najarian Says buy ATML on Options
Guy Adami and Stacey Gilbert says buy FCX
Macke says sell ANF

---