The stock market exploded higher Monday with the Dow and the S&P 500 up over 2%. It's been four years since the markets have seen a move like this. Fast Money's mavens discussed the meaning of the ramp, and a host of other topics facing the Street.
Jeff Macke thinks this was just a oversold rally. Eric Bolling says
( BSC) rallying 15% off the lows is unheard of. Guy Adami noted the airline stocks were down 5% on what should be a monster day for these stocks. Tim Seymour thinks volume is light and hedge funds still haven't felt the pain yet.
Financial Select Sector SPDR
came back very strong on the day.
Jeff Macke thinks the shorts got "smoked" in the financials. Macke would be selling the XLF into strength ahead of the Fed meeting. (Real Money Take: Jim Cramer said recently, "Is this the stuff that Merrill Lynch and Bear Stearns and Lehman packaged? Is this the stuff that MBI insured? Who the heck knows." To read more on what Cramer said,
click here. Cramer also said, "I reiterate that you can't be major short here. I do like owning those January puts on the housing index (HGX), Financial Spyders (XLF)..." To read more on what Cramer said,
The regional banks were among the strongest sector today. Guy Adami thinks the sector was up because of a
upgrade and the
stock buy back. Eric Bolling thinks the Fed might lower rates which is benefiting this group, while Tim Seymour thinks market players could be buying this sector because of the high dividend yields.
Crude oil dropped 5%, the biggest drop in seven months. Eric Bolling says money was just flowing out of this trade with hedge funds locking in profits. Eric said watch the $68 level from a technical standpoint. Eric is a big long-term oil bull and would buy the
United States Oil Fund
Jeff Macke thinks oil goes to $68. (Real Money Take: Mark Manning said recently, "USO does not have a lot of price resistance until it gets up around $65. As long as this ETF stays above the $54 level, the uptrend remains intact." To read more on what Manning said,
Should market players hold gold here? Eric Bolling loves gold for the trade on U.S. dollar bearishness. Eric also likes gold because India and China continue growing and are huge consumers of the commodity.
Tim Seymour sees a rotation out of gold stocks and into the gold ETFs like
streetTRACKS Gold Trust
iShares COMEX Gold Trust
. The CEO of Newmont recently said gold is going to $1,000. (Real Money Take: Dan Fitzpatrick said recently, "What's most important is that ETFs like streetTRACKS Gold Trust are staying above their 200-day moving average and maintaining their uptrend." To read more on what Fitzpatrick said,
will report earnings Tuesday after the bell. Jeff Macke says market players can be long the stock into earnings, and Guy Adami likes it long-term.
Several North New Jersey counties were told to boil water after problems at some treatment plants. Eric Bolling thinks that $250 billion to $400 billion will be needed to improve water sytems over the next five years. Eric's plays are
( SZE). Tim Seymour thinks water is looking like oil in terms of scarcity.
exploded higher by 17% after hours on a great earnings report. Eric Bolling says Macau is a story just starting to be told. Eric likes any company with exposure to Macau, like
Melco PBL Entertainment
. (Real Money Take: Dan Fitzpatrick recently said, "f you watch CNBC's "Fast Money," then you know that Eric Bolling really likes Melco. A move above $14 might be just the excuse you need to join him." To read more on what Fitzpatrick said,
was up on a 33% jump in profits. Eric Bolling called Berkshire slow money. Guy Adami thinks Berkshire will continue to be a "monster."
Ben To The Rescue?
The market rallied huge Monday, but was this the vote-of-confidence rally for Ben Bernanke? On Tuesday the Fed will make a decision on interest rates, and speak to the public on the current health of the economy. Eric Bolling wants Bernanke to be calm and to just be Ben. Tim Seymour doesn't think that Bernanke will say much and the market will let the numbers do the talking. Jeff Macke says Bernanke must talk about the mortgage problems and if he doesn't the market will selloff. Rick Santelli says market players could sell Fed Fund futures.
No Bottom Fishing
The Dow has fallen 5% from its high of three weeks ago and bottom-fishers are stepping up to the plate to buy beaten-down stocks. Is it time to be buying, or is it time to short some names that might not be on the road to recovery? Jeff Macke would short
and he is amazed this stock is up 20% so far on the year.
Eric Bolling would short solar stocks. Guy Adami would short
if it hits $51. Tim Seymour would short the Financials Select Sector SPDR or
( LEH) because he doesn't see the pain being over for this sector. Dylan Ratigan talked about the strategy of selling put options 10% out of the money. Eric Bolling likes the idea of selling puts, but not 10% out of the money. (Real Money Take: Jim Cramer recently said, "Citigroup pools all of those mortgages and offers them into a bond that yields 7%, say, as a blend of the payments." To read more on what Cramer said,
Tim Seymour would sell one-month puts on
10% out of the money.
Emerging markets have been huge wins for investors for the past two years, but the last two weeks have seen the stock markets in Brazil, Russian and China come down. Is now the time to buy these markets? Tim Seymour was bullish on Brazil and he likes
Banco Itau Holding Financeira
( ITU). (Real Money Take: Dan Fitzpatrick recently said, "But the best time to buy the EWZ has been on a pullback to the middle Bollinger Band-the 20-day moving average." To read more on what Fitzpatrick said,
Eric Bolling thinks if you believe in the global economy like he does you can buy
iShares FTSE/Xinhua China 25 Index
iShares MSCI Brazil Index
iShares MSCI Emerging Markets Index
(EEM). (Real Money Take: Mark Manning recently said, "You can see from the chart that the tremendous strength of the iShares MSCI Emerging Markets Index Fund (EEM) has not offered many buying opportunities, as it has stayed well above its 50-day moving average." To read more on what Manning said,
Whale Week: The King of Private Equity
All week long "Fast Money" will run the special segment "Whale Week." "Whales" on Wall Street are the biggest market players, and the crew will be profiling the big player's investment strategies and how you can trade like these whales. Today the topic was "The King of Private Equity" -- Henry Kravis. Henry Kravis runs KKR and his firm pretty much pioneered the leverage buyout in the last 70s. The strategy is to go after undervalued assets, using debt and then selling them at a profit. His most famous deal was buying RJR Nabisco for $25 billion.
Two large deals he has done this year were the $29 billion buyout of First Data and the largest buyout ever of TXU Corp for $44 billion. Eric Bolling says market players should visit KKR's website and see what companies they own. He feels this is a great way to piggyback off of KKR's homework.
Jeff Macke thinks the trade is to buy
(SUNW) because KKR is playing this stock for the long term. (Real Money Take: Jim Cramer recently said, "There are two kinds of stocks to buy here: those that blew away the numbers on revenue and those that blew away the numbers on cost controls. Sun (SUNW) and GM (GM) come to mind." To read more on what Cramer said
Pops & Drops
was up 7% today on news of lower costs. Jeff Macke likes the stock.
was up 5% Monday on a solid earnings report. Guy Adami would buy on this dip.
ran up 11% ahead of its earnings report tomorrow. Eric Bolling likes the stock, saying it's the opposite of California and homebuilders, it's casino and China. The stock is heavily shorted.
was down 14% as bears pressed shorts in the homebuilders. Eric Bolling says it has homebuilder and California in its title, so stay out.
was down 6% after
The New York Post
had an article that said K-Mart isn't doing the job in selling her products. Tim Seymour thinks in this current environment the stock is a sell. China's stake in
is down $425 million in six weeks.
A blog in China called Blackstone "sweet talking wolves in human skin." Jeff Macke makes says the stock is going lower. (Real Money Take: Jim Cramer recently said, " Today people tell you that Blackstone's (BX) great. How the heck do they know? I mean it, actual recommendations to buy these companies." To read more on what Cramer said,
Jeff Macke would sell the financials and specifically
Goldman Sachs Group
. Guy Adami prefers buying
over Cisco. Tim Seymour likes the current entry point on iShares MSCI Brazil Index. Fast Money apologized for saying that the selloff in
Principal Financial Group
was due to credit and mortgage concerns. PFG sold its mortgage business three years ago.
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