Rate Cut Raises the Roof
The equity markets problems all began with concerns of poor lending practices in the housing market. Was the big rate cut on Tuesday a signal from Ben Bernanke that he will not let housing blow up?
Adami declares that housing stocks are back for a trade. He likes
Hovanian,(HOV Quote - Cramer on HOV - Stock Picks) which has 60% of the float short. (
RealMoney Take: Jim Cramer said recently, "Toll Brothers should buy Hovnanian." To read more on what Cramer said,
click here.)
Additionally, he recommends
Toll Brothers(TOL Quote - Cramer on TOL - Stock Picks) and
Pulte Homes(PHM Quote - Cramer on PHM - Stock Picks) for a trade. Finerman continues to speak highly of
Home Depot(HD Quote - Cramer on HD - Stock Picks), which she owns, for its cheap valuation. She has been wrong on HD so far, but she is sticking with it.
Word on the Street
Cummings(CMI Quote - Cramer on CMI - Stock Picks) and
Caterpillar(CAT Quote - Cramer on CAT - Stock Picks) exploded higher on the Fed cut. Najarian thinks that CAT has much more upside to come. (
RealMoney Take: Jim Cramer said recently, "Caterpillar's on the move: natural to go out at $75, there I would buy the September 70 calls." To read more on what Cramer said,
click here.)
Global Notes
Emerging markets like China and Brazil soared on the rate cut. Tim Seymour, Principal at Red Star Asset Management, joined the crew to discuss the emerging markets. Seymour likes gold and
Brazil ETF(EWZ Quote - Cramer on EWZ - Stock Picks).
Face2Face
The Fast Money team takes mail from viewers. Ken from Kansas writes, "What happened to the recommendation to get out of gold if the Fed dropped its rates?" Adami reiterated his bearish stance on gold.
Evan from Connecticut wants to know, "Should I sell my October $195 call options on
Goldman Sachs(GS Quote - Cramer on GS - Stock Picks) now or is there still more upside?" Najarian feels strong about GS, but you should take half the position off before earnings.
Stockpickr Staff
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