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'Fast Money' Recap: Hitting the Brakes on Tesla


Brown said that while there was nothing to dislike about the report, the stock is starting to get a little expensive over $90 per share, up almost 30% year to date. After being a shareholder since January, he said that he has swapped out his holdings in favor of the SPDR Healthcare ETF (XLV), so that he can lock in gains, while maintaining exposure to the group.

Finally, Goldman removed Ford Motor (F) from its conviction buy list and put on General Motors (GM).

Adami was quick to note that Goldman still seems optimistic on shares of Ford after it raised its price target to $20 from $17. For now, he thinks the trade on Ford is to wait. There could be further downside ahead from this news but with earnings on July 24, he thinks that could be the next catalyst to drive shares higher.

Other stocks in the news were American Express (AXP), MasterCard (MA) and Visa (V), because of new potential European credits spending caps highlighted in a report by the Financial Times.

Adami was quick to defend both Visa and MasterCard. He said these media reports continually try and knock these names down only to end up failing in the end. Once the dust finally settles, which it will, he says these names will certainly to be a buy.

Brown said Visa would be the better of the two for investors to hold if there are spending caps. Since this report involves Europe, Visa has much lower exposure than MasterCard because it is two different companies there: Visa and Visa Europe.

Finerman added she is long MasterCard and while the cap does seem like a rather significant figure, she isn't going to jump ship just yet.

Michelle Lee, the show's host, added that American Express will report earnings Wednesday, which could add to the volatility.

Also reporting earnings Wednesday is eBay (EBAY), which will announce second-quarter results after the bell.

Adami doesn't feel all that great about AXP heading into earnings. He said the stock is bumping up against price levels last seen in 2004, noting that the technicals -- at least so far -- aren't working in investors' favor. He suggested they lighten their positions by as much as 75% heading into the event and "live to fight another day," reasoning that he would rather buy on a breakout over $60 or a pullback under $50.

Intel (INTC), which is down 3% on the month and has so far lagged the S&P 500 year to date, also reports after Wednesday's close. Brown says the overall business is clearly in a decline, but that the company is making moves to try and stay relevant. He'd rather not play the name and instead listen to the conference call for some direction.

Seymour also thinks traders should take a pass on International Business Machine (IBM), citing a weak business cycle, poor technicals and unfavorable options positioning.

In the final trade, Seymour is taking profits in General Motors, but will buy on a pullback. Taking the other auto trade, Brown thinks Ford is a buy after Tuesday's pullback. Finerman likes Ocwen Financial (OCN) after the pullback. Adami said he's a buyer of Norfolk Southern (NSC)

-- Written by Bret Kenwell in Petoskey, Mich.

Follow on Twitter and become a fan on Facebook.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.
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