'Fast Money' Recap: China Inflation Plays

David Riedel outlined a trading strategy to deal with China's rising inflation.
By David Tong ,

NEW YORK (

TheStreet

) -- The markets finished the week on a positive note despite a disappointing jobs report.

The

Dow Jones Industrial Average

added 19.68, or 0.17%, to 11, 382.09 while the

S&P 500

rose 3.18, or 0.26%, to 1,224.71. The

Nasdaq

climbed 12.11, olr 0.47%, to 2,591.46.

Guy Adami said on

CNBC

's "Fast Money" TV show that it was a good day for the market considering the poor jobs report. He said the market hung in there despite every opportunity for a sell-off.

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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Brian Kelly commented on the weakness of the bond market, which he said indicated the markets ignored the report. Karen Finerman downplayed the jobs report, saying it was only one piece of data.

As for specific trades, Kelly said he remained long

ProShares UltraShort 20+ Year Treasury ETF

(TBT) - Get Report

. Adami said

Netflix

(NFLX) - Get Report

, down more than 4% today, continues on the decline. He also said some retailers are starting to show their hand and recommended taking profits in

Abercrombie & Fitch

(ANF) - Get Report

.

Tim Seymour noted the strong market action in the emerging markets this week, with Russia "going through the roof" and Brazil "lagging."

Melissa Lee, the moderator of the show, asked the panel for suggestions on plays on the metals, copper and gold. Kelly said he was following a stock replacement strategy. For example, he said he took profits on

Market Vectors Junior Gold Miners ETF

(GDXJ) - Get Report

and bought calls in GDXJ.

Adami said silver continues to do well, especially

Silver Wheaton

(SLW)

. Patty Edwards said she was holding onto platinum and adding to it.

In the trucking trade, Finerman returned to a trade that has worked over the past month. In early November, she touted the trucking industry on some good data for an industry that has rebounded. She said trucking stocks rebounded again today after some phenomenal data on Wednesday on run rates for truck orders. Her firm owns

ArvinMeritor

( ARM).

Kate Kelly,

CNBC

reporter, commented on the latest buzz among hedge fund managers: segregated risk funds. Anthony Scaramucci said these funds are essentially betting on a doomsday strategy.

He said he personally doesn't like them. He said hedge fund managers would be better off coming up with their best long and short ideas.

In the trading the globe segment, David Riedel, of Riedel Research Group, said investors in Chinese equities should heed the warning signs of inflation in China. He said consumer worries about inflation in China are at the highest levels since the beginning of 2008. He said the Chinese government has few tools to handle the situation except for the use of blunt instruments.

According to Reidel, inflation is approaching 5%, far above the government's target. He said two groups that will be affected by inflation are energy makers and banks.

He said investors who own

iShares FTSE/Xinhua China 25 Index

(FXI) - Get Report

should be worried because 45% of the portfolio is energy-related.

He advised shorting the FXI and banks and going long Hong Kong properties and durable goods companies.

In the final trades, Edwards said she liked

Nordstrom

(JWN) - Get Report

if the "price is right." Seymour said to stick with

Trina Solar

(TSL)

. Adami liked

Roper Industries

(ROP) - Get Report

Finerman liked

Omnicare

(OCR)

. Kelly liked

Andersons

(ANDE) - Get Report

.

--Written by David Tong in San Francisco.

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David Tong

.

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.

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