By Roberto Pedone
WINDERMERE, Fla. (
) -- According to
"Fast Money" traders, the European storm is gathering strength. On Wednesday's "Halftime Report" segment, Brian Kelly of Kanundrum told viewers that he'd keep a very close eye on developments abroad. He mentioned that S&P downgraded Spain's rating to AA with a negative outlook, on the heels of downgrades of Greece and Portugal.
Kelly is worried the contagion could spread to the UK and Japan. He said he's playing it short the
CurrencyShares Euro Trust
and he'd think about shorting the
CurrencyShares British Pound Trust
. Kelly also suggested looking at shorting the European banks, such as
Jared Levy of Peak6 recommended shorting the euro because the technicals are pointing to much lower prices. Patty Edwards of Storehouse Partners explained that a weak euro makes a strong dollar. She said the way to play this trend is with the multinationals.
The "Fast Money" crew has recently highlighted trading ideas that play off new legislation aimed at derivatives trading, stocks for a housing recovery and stocks with unusual options activity. Here are some highlights from over the past week as aggregated from the show.
: The traders are rethinking their smartphone strategies after news broke that
has agreed to acquire
for around $1.2 billion, or $5.70 a share. On Wednesday's "Fast Money" show,
Jim Goldman told viewers: "As H-P develops new netbooks and other gadgets, it's likely they will run on webOS -- what is now H-P's own software. I'd expect that to be a great business proposition for H-P and a terrible development for
: The traders think four stocks should be on everyone's radar right now. On last Friday's "Halftime Report" segment, Eugene Profit of Profit Funds told viewers: "Take a look at
. I think the credit trends are improving, and this is a name we'd be heaving in." The
: The traders have noticed some unusual options action in a number of stocks, including
. On Wednesday's "Halftime Report" segment, Jared Levy told viewers: "The volume of June 50 calls combined with positive chatter suggests to me that
could make a share move higher." The
: Recently, exchange stocks such as
Nasdaq OMX Group
soared higher on news that a deal had been reached on derivatives trading legislation. What's the trade? On Monday's "Fast Money" show, Pete Najarian told viewers: "Of all the exchanges, the
has had the most reaction to news about derivative trading. I think they will see a boost." The
: Investors sold a number of
rivals in the wake of the tech giant's earnings. Were these selloffs warranted, or are some of these names now oversold? On Monday's "Fast Money" show, Tim Seymour told viewers: "I think
is going to fall further. Goldman just removed it from their conviction buy list." The
Research In Motion
: The traders are keeping a close eye on the homebuilders with the most recent Case-Shiller report likely to show home prices went up on an annual basis. On Monday's "Fast Money" show, Patty Edwards told viewers: "The home builders have already had a phenomenal run, so I don't think that's the way to play it. Instead I'd look at downstream trades such as
-- Written by Roberto Pedone in Windermere, Fla.
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