The traders of CNBC's "Fast Money" think it was prudent for investors to take profits on Monday when you consider the recent strength in the stock market. Guy Adami thinks we are now in no-man's land, because the S&P 500 didn't trade up to 900 before it sold off.
Karen Finerman mentioned that a recent
New York Times
article might have scared investors. She said that if the big banks are forced to convert their TARP capital into common stock, it could lead to a selloff in the banking sector. Finerman also believes that some of the big banks will not pass the street test.
One thing that all of the traders at "Fast Money" agree on is that leading up to the stress test on Friday the market will continue to be extremely volatile. In volatile markets, traders can expect to see large swings both up and down in the most popular stocks. These large moves can create great trading opportunities.
The gang recently highlighted trading ideas that play off of technology stocks, Big Pharma stocks and unusual options activity. Here are some highlights from over the past week as aggregated from the show.
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