'Fast Money' Portfolios of the Week
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PEWAUKEE, Wis. (
) -- The traders of
CNBC's
"Fast Money" believe that institutional and retail investors don't want to miss out on the current stock market rally. On Tuesday's "Fast Money" TV show, Tim Seymour told viewers that stocks were boosted by comments out of
Fed
Chairman Ben Bernanke, who said the recession was near the end.
Karen Finerman said the market move seems like the type of action where money managers are just chasing returns. She explained that investors who manage money for a living can't afford to miss out on gains.
Guy Adami said he was intrigued by the Master Trust data. He mentioned that banks such as
JPMorgan Chase
(JPM) - Get Report
showed a rise in charge-offs and the first jump in delinquencies since April. Adami was surprised that the investors were jumping into stocks and overlooking the bad data.
Pete Najarian pointed out that options volume was huge as investors continued to speculate on upside calls but also bought inexpensive puts for downside protection. He thinks this type of options activity means the market will see more upside.
The crew has recently highlighted trading ideas that play off of five bank stocks, three biotech stocks and stocks with unusual options activity. Here are some highlights from over the past week as aggregated from the show.
Fast Money's 5 Banks to Own Now
: Which bank stocks should investors buy right now? The traders know just the answer. On Tuesday's "Fast Money" show, Rochdale Securities analyst Dick Bove told viewers: "The important thing to know if you're trading the space is that 60% of the banks in the United States are probably going to show losses over the next six months. I'd only look at banks where there's sure to be pretax earnings." The
Fast Money's 5 Banks to Own Now
portfolio includes
Goldman Sachs Group
(GS) - Get Report
and
Northern Trust
(NTRS) - Get Report
.
Fast Money's Global Recovery Trades
: Material and industrial stocks have been fire, and this action would lead one to believe that a global recovery is underway. On Tuesday's "Fast Money" show, Tim Seymour told viewers: "I'm watching
Arch Coal
(ACI) - Get Report
, which provides coking coal used in the manufacturing of steel. I think the stock could go to $26.50." The
Fast Money's Global Recovery Trades
portfolio includes
Joy Global
(JOYG)
and
Nucor
(NUE) - Get Report
.
Fast Money's Chemical Stock Trades
: Recently, chemical stocks took off after
Solutia
(SOL) - Get Report
, a specialty chemicals and materials company, raised its 2009 earnings view. On Tuesday's "Fast Money" show, Karen Finerman told viewers: "I wish I owned Solutia, but I don't, and I wouldn't buy it here." The
Fast Money's Chemical Stock Trades
portfolio includes
Eastman Chemical
(EMN) - Get Report
and
Sasol
(SSL) - Get Report
.
: The traders have noticed some unusual options activity in a number of stocks. On last Friday's "Fast Money" show, Pete Najarian told viewers: "There was heavy activity all week in the September calls, and
Energy Conversion Devices
(ENER)
confirmed its CFO had pulled out of a conference sponsored by ThinkEquity." The
portfolio includes
Dendreon
(DNDN)
and
BioMarin Pharmaceutical
(BMRN) - Get Report
.
Fast Money's 3 Hot Biotech Stocks
: It looks like biotech stocks are set to breakout. Which names should investors be looking to buy? On last Friday's "Fast Money" show Deutsche Bank analyst Mark Schoenbaum told viewers: "
Gilead
(GILD) - Get Report
is one of the best managed companies in the space. Third quarter numbers will probably beat expectations and the stock has lagged but it's higher quality." The
Fast Money's 3 Hot Biotech Stocks
portfolio includes
Genzyme
(GENZ)
.
Fast Money's Casino Stock Trades
: As the economy begins to recover, should you invest in casino stocks? On last Thursday's "Fast Money" show, Tim Seymour told viewers: "I'd play the space with
Melco Crown Entertainment
(MPEL)
." The
Fast Money's Casino Stock Trades
portfolio includes
MGM Mirage
(MGM) - Get Report
and
Shuffle Master
(SHFL)
.
-- Written by Roberto Pedone in Pewaukee, Wis.
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Roberto Pedone, based out of Pewaukee, Wis., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also na outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
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