More bad news about the worst housing market since 1970 still couldn't bring down the stock market on Thursday. The team at CNBC's "Fast Money" noted all of the reasons to go down and why the market didn't.
Guy Adami says he's finally warming up to
, and suggests buying it with a stop at $23.50. Karen Finerman said to look at the homebuilders for a trade here. (
Take: Andrew White said recently, "Perhaps, KBH's dead cat bounce has arrived? Technicals have improved in the last week despite share price declines and
cuts. That said, 20% downside to support cautions any buyers focused more on 8% and 20% upside to resistance." To read more on what White said,
The Pentagon announced a stunning budget request for $190 billion for 2008. On this news, Adami would buy
. However, he did mention that BA is getting a little rich in valuation. (
Take: Jim Cramer said recently, "... today's ramp has been perfect for the bull markets of infra
refineries and petro plants, ag
energy, alt, minerals
if demand is strong for oil that means things are robust enough to buoy oil and aerospace defense
reduced energy costs/Boeing)." To read more on what Cramer said,
Tropical storm Lorenzo nears the gulf coast causing crude oil to march higher on Thursday. Pete Najarian points to the oil service sector leading oil higher. He advises playing
Adami noticed the crack spread coming in, and refiners are his ideal play, especially
Take: Daniel Dicker said recently, "A tremendous move in the relationship between crude oil and gasoline prices could be giving us an opportunity in the refinery stocks like Tesoro." To read more on what Dicker said,
Crude tanker stocks have been rising dramatically with oil trading north of $80. Rates for bulk and dry shippers have gone up 350% according to Najarian. All the dry shippers like
are on fire. Adami commented on the cheap valuation on DRYS. Najarian also says to keep an eye on oil shipper
and he mentions that NT sets rates off the spot crude price and Nordic has yet to move.
Chartology With Dennis Gartman
Dennis Gartman, author of
The Gartman Letter
joined the crew to discuss his take on commodities. Gartman says don't fight the Federal Reserve when it's cutting rates. The regional banks will benefit from a rate-cutting environment. Jeff Macke agrees with this thesis. Gartman says think of your local bank for trade ideas.
Gartman feels the current Federal Reserve is more proactive than Feds of the past. Gartman feels oil is going higher and he tried to short oil but was wrong for one day. He would buy oil drillers as a way to play the crude boom. Gartman loves the chart on gold and feels its going much higher by year-end. His favorite position right now is being long wheat. He likes
Market Vectors ETF
for a play on wheat even though he admits it isn't a pure play.
Word on the Street
Financials helped lead the market higher even with many market participants questioning
The New York Times
report on Warren Buffett buying a stake in
. To see all of Buffett's holdings,
Macke comments that a lot of people are still betting against the financials and could be wrong. Najarian agrees that financials are strong. Adami wouldn't buy BSC for a value trade. (
Take: Jim Cramer said recently, "But Bear should have been down big today. It isn't. Worth noting." To read more on what Cramer said,
traded higher after an Oppenheimer analyst said
might make a bid for the satellite firm. It's a rumor that Macke doesn't buy, but he likes DISH anyway. Najarian mentioned the aggressive options buying in DISH.
made headlines with plans to release a new $99 Centro smart phone. Macke likes PALM for the first time and is changing his tune and calling it a buy. In his opinion, the company did two smart things by getting rid of the Folio product and introducing Centro. (
Take: Tero Kuittinen calls Palm's phone an oddball but shrewd strategy. To read more on what Kuittinen said,
China hit the news on Thursday with Shenhua Energy raising $8.9 billion and talk that
might raise $5 billion. Najarian cautions investors to be careful with
iShares FTSE/Xinhua China 25 Index
, which doesn't have a lot of diversity. Adami advises takinge some profits on
traded higher after hours on solid earnings. Najarian maintains that this is a situation where you buy the news and sell the story. He also pointed out that the options were on fire Thursday.
announced plans to expand its $4 generic drug program. Finerman likes WMT and owns the stock. However, Macke disagrees and prefers
fell after a UBS analyst downgraded the firm. If your time frame is two weeks, Macke says the downgrade makes sense. Instead, he feels right now is a good time to build positions in names like GME. Macke thinks GME will have a huge Christmas.
'Fast Money' Biotech Basket
Historically, the fourth quarter is a strong period for biotech stocks. Knowing this, "Fast Money" created a biotech basket to capitalize off the strength. Najarian offered up the basket, which includes
. Adami wants to add
to the basket as well.
Finerman suggests if investors don't want to take unique risk, then mutual funds are a good solution. Funds like
T. Rowe Price Health Sciences
BlackRock Health Sciences A
Vanguard Health Care
are good choices.
The crew responds to viewer questions in the Face2Face segment.
Rod from New Jersey writes, "Is there an ETF or an options strategy I can use to trade the US dollar? Dylan Ratigan offered up a few ideas, which were
CurrencyShares Euro Trust
for a play on the euro,
CurrencyShares Canadian Dollar Trust
for a play on the Canadian dollar and
CurrencyShares Japanese Yen Trust
for a play on the yen. Adami thinks the best way to play the falling dollar is buy
Theresa from California asks, "When calculating risk, how much weight should be given to the mystique a CEO carries, and the public perception that a company's success rides on that CEO's shoulders?
appears riskier to me for this reason, than
Research In Motion
Macke likes CEO's with a cult following.
comes to mind with the cult aura surrounding Larry Ellison. (
Take: Richard Suttmeier said recently, "Oracle: At nearly 20% overvalued, profit-taking is merited." To read more on what Suttmeier said,
Pops & Drops
popped 6% after bullish comments on the firm out of Lazard. Najarian prefers
China Bak Battery
exploded up 20% as the Chinese stocks continue to run. Najarian watched the big spike again today in CBAK. (
Take: Steven Smith said recently, "One name that has caught the momentum is China Bak Battery, which makes rechargeable batteries. It is putting together consecutive gap-higher days as shares are up another 25% today." To read more on what Smith said,
traded up 2% after Carl Icahn spoke favorably of the firm on Wednesday night's "Fast Money." To see all of Icahn's holdings click here,
fell 2%. Macke has taken a change of course and now favors YHOO.
fell 3%. Macke says let it pull back because everything is fine.
The crew signs off for the day with their last trade ideas.
- Macke advises buying Yahoo! and Palm.
- Najarian goes long with Nordic American Tanker Shipping (NAT) - Get Report. He bought NAT Thursday and is putting his money where his mouth is.
- Adami recommends buying KB Home (KBH) - Get Report.
- The Finerman trade is Seacor Holdings (CKH) - Get Report.
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