By Roberto Pedone
PEWAUKEE, Wis. (
) -- The traders of
"Fast Money" think that the current market is a stock picker's market. On Wednesday's "Fast Money" TV show, Guy Adami told viewers that it's a bad idea here to follow the crowd, which is in a buying mood. He said that traders should play the market that is in front of them each day.
Tim Seymour agreed with Adami. He advised viewers to avoid playing the macro trends in 2010, because the unprecedented volatility in the markets is most likely going to go away. Seymour thinks the market is going to see a rotation into higher-quality companies and bottom-up stock-picking. He mentioned that the trades that haven't work for the past 18 months will start to work now.
Karen Finerman also agreed that this is a stock picker's market, or a market that you have to be selective with. (View
on Stockpickr). She said the market is moving from a macro-driven past to a lower-volatility stock picker's environment going forward.
Pete Najarian reminded investors that if you're going to play market picker, make sure to buy protection. Melissa Lee, the host of the show, said stock-picking with protection is the new mantra for 2010.
The "Fast Money" crew has recently highlighted trading ideas that play off their top stock picks for 2010, their top dividend stocks and stocks with unusual options activity. Here are some highlights from over the past week as aggregated from the show.
: The traders highlighted their top high-risk and low-risk trades for 2010. On Wednesday's "Fast Money" show, Guy Adami told viewers: "Shorting
Research In Motion
( RIMM) is an aggressive trade, but it has worked, and I think it continues to work. I expect the company to have trouble with margins in 2010." The
United States Natural Gas Fund
: If he could place bets on only one sector next year, Jon Najarian said it would have to be the housing sector. On last Friday's "Fast Money" show, Najarian told viewers: "For the first time in four years, Moody's rated the sector as stable due to rising sales and the most affordable property market in years." The
: With the threat of dividend cuts starting to lift, the traders recommended some of their top plays off this trend. On Tuesday's "Fast Money" show, Guy Adami told viewers: "
(VZ) is my dividend yield play." The
Piedmont Natural Gas
: The traders have noticed some unusual options activity in a number of stocks. On Wednesday's "Fast Money" show, Pete Najarian told viewers: "The volume of January 2011 20-calls suggest to me institutional buyers are expecting a big move in
next year." The
: Recently, retail sales data confirmed that a snowstorm that hit last Saturday put a major dent in sales for stores across the country. Retailers are now being forced to bet on a spending surge in the final days before Christmas. How should you play this trend? On Tuesday's "Fast Money" show, Brean Murray analyst Eric Beder told viewers: "
doesn't get the respect it deserves from the Street. But that's going to change." The
: Recently, crude oil jumped above $74 a barrel due to a sharp drawdown in U.S. crude stocks and an unexpected fall in gasoline inventories. How should you trade this? On Wednesday's "Halftime Report" segment, Joe Terranova told viewers: "I think the trade is long refiners. Look at
-- Written by Roberto Pedone in Pewaukee, Wis.
Stockpickr is a wholly owned subsidiary of TheStreet.com.
Roberto Pedone, based out of Pewaukee, Wis., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an 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.