'Fast Money' Recap: Catching Up
NEW YORK (
) -- The markets roared back Wednesday on prospects of an recovery in the U.S. and progress on sovereign debt issues in Europe.
The
Dow Jones Industrial Average
soared 249.76, or 2.27%, to 11, 255.78 and the
S&P 500
added 25.52, or 2.16%, to 1,206.07. The
Nasdaq
jumped 51.20, or 2.05%, to 2,549.43.
Guy Adami said on
CNBC
's "Fast Money" TV show he was impressed with today's tremendous price action, though he felt the market will head lower at some point.
Joe Terranova said the problem for investors was having the temerity to hold on and not sell off. Karen Finerman said the single issue that she felt propelled the rally was the prospects of some action from the ECB in the eurozone debt crisis.
For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
3 Stocks I Saw on TV |
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Dennis Gartman said he didn't think the ECB was going to do anything aggressive. He also said it would be foolish to sell into today's rally. He said he would sell into the strength of the euro. He also said he was long gold in euro terms and short the euro. "It's a wonderful trade."
Gartman agreed with Terranova that the ECB must have been behind the today's purchase of debt from Ireland and Portugal.
Melissa Lee, the moderator of the show, noted that materials and industrials were a bright spot in the markets. Adami said he particularly liked
Cooper Industries
(CBE)
and
Honeywell
(HON) - Get Report
. Terranova stayed with his favorite commodity play,
Freeport McMoRan
(FCX) - Get Report
.
Pete Najarian said he liked the gold mining stocks, but Stephen Weiss said he was a seller of gold. Karen Finerman said gold was good for any scenario, even though she admitted she didn't understand the logic behind the trade.
Commenting on today's broad tech rally, Finerman said
Microsoft
(MSFT) - Get Report
remains an extremely undervalued franchise. Terranova said he was concerned about
(GOOG) - Get Report
heading lower after some terrible price action today.
Adami said it was time to take profits in
Netflix
(NFLX) - Get Report
. And Terranova said he sees institutional money managers dumping tech between now and the end of the year. He said tech had its run between Labor Day and early November.
Lee said the financials had a strong showing today. But Adami and Finerman said they were disappointed in the performance of the sector. Najarian said regional banks were the one bright spot. Najarian also said he liked
Citigroup
(C) - Get Report
after he spotted some insider buying of the stock.
Lee said the
Barnes & Noble
(BKS) - Get Report
was the only black eye for the day, as it was down 4%. Finerman, who's been shorting the stock, said the company needs to make drastic changes to its business model.
Returning to the market, Gary Kaminsky said institutional money managers will be aggressively buying the next two weeks to cover a high level of underperformance this year. He said they will be looking for equities that will give them the highest percentage moves.
Steve Cortes said he wasn't not buying into the China rally. He said the country's inflation is getting so out of control that it will be forced to raise interest rates. He said that move will have a negative impact on the economy. As a result, he's bearish on China and trades such as resources and energy.
Shifting to the coal trade, Stephen Weiss said coal has been on a tear and will become increasingly valuable because utilities, whose stockpiles at all-time lows, need to buy more.
Weiss said the other catalyst behind the trade is China, which needs increasingly more coal. Weiss' picks in the trade are
Alpha Natural Resources
(ANR)
,
Massey Energy
(MEE)
and
Penn Virginia Resource Partners
(PVR)
for its 6.4% dividend.
Gartman concurred with Weiss' comments, adding any pickup in GDP is going to require more coals.
Shifting briefly to the Treasuries, Kelly said he is still long the
ProShares UltraShort 20+ Year Treasuries ETF
(TBT) - Get Report
. He said there is growing market realization that $600 billion might be it for quantitative easing. He said that if the economy gets better, QE won't be needed.
In a preview of his newsletter tomorrow Gartman said he would be talking about his favorite trade: long the Australian dollar and short the euro. He said he would sell the yen.
In the final trades, Terranova said he liked biotech stocks. Adami liked
Trinity Industries
(TRN) - Get Report
. Finerman liked
CareFusion
(CFN)
. And Najarian liked
Dow Chemical
(GM) - Get Report
.
--Written by David Tong in San Francisco.
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