This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'Fast Money' Recap: Trading on Geopolitical Tensions

NEW YORK (TheStreet) -- The S&P 500 fell 1.18% while the CBOE Volatility Index (VIX.X) (also known as the "Fear Gauge") rocketed higher by 32% as geopolitical tensions increased on Thursday. 

On CNBC's "Fast Money" TV show, the trading panel discussed what to do next. 

Guy Adami, managing director of stockmonster.com, said the $108 level is "critical support" for the iShares Russell 2000 ETF (IWM), after forming a potential "double top," a bearish technical pattern, near $120. 

Brian Kelly, founder of Brian Kelly Capital, said he is a buyer of long-dated Treasury bonds. He added that "sentiment sectors" like biotech and social media have been declining for several consecutive sessions, meaning today's broader selloff wasn't surprising. 

Jon Najarian, co-founder of optionmonster.com and trademonster.com, pointed out the Volatility Index is still relatively low by historical standards. He said investors could buy call options and/or bull call spreads in the VIX.X for protection, but he believes it will decline on Friday. 

Steve Grasso, director of institutional sales at Stuart Frankel, said the S&P 500 needs to stay above 1,952, which is last week's low. For now, he is a buyer of utility stocks such as Southern Company (SO) and gold via the Market Vectors Gold Miners ETF (GDX)

Tim Seymour, managing partner of Triogem Asset Management, said geopolitical issues haven't mattered much to U.S. equities until now. He added that the S&P 500 fell 1% for the first time in nearly 60 sessions, while the Market Vectors Russia ETF (RSX) fell 7%. 

Thomas Pickering, former U.S. Ambassador to Russia, said the shooting down of the Malaysian airliner  above Ukraine is "terribly tragic." Russian President Vladimir Putin seems rather "defensive" and perhaps the incident is "bad enough that it will bring some sanity" to the situation, Pickering said. Israel also invaded the Gaza Strip Thursday, hoping to destroy underground tunnels that lead into Israel. The attack isn't surprising and the region needs political change, Pickering concluded. 

Robert Peck, Internet analyst at SunTrust Robinson Humphrey, has a buy rating on shares of Google (GOOGL) with a $680 price target. He said business in the U.K. is reaccelerating, which is very positive for Google. He said there are four big takeaways for the earnings report: Google is growing revenue "north of 20%" year over year, has stable margins, is reinvesting excess profits for long-term growth and has a low valuation.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $134.68 3.40%
FB $81.81 0.34%
GOOG $555.39 -1.70%
TSLA $231.69 6.10%
YHOO $44.37 -0.34%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs