'Fast Money' Recap - Technicals
The stock market plunged Monday as investors continue to sell equities due to the latest disappointing housing data. The Dow closed down 218 points and the Nasdaq fell 43 points. The crew at CNBC's "Fast Money" pondered the fate of the market and called in technical analyst Louis Yamada for insight.
Karen Finerman sees storm clouds are everywhere and the Goldman downgrade of
Citigroup
(C) - Get Report
really hurt the markets. In Guy Adami's opinion, this might be close to a bottom for the markets. Jeff Macke thinks that Wall Street decided on Monday that there's a recession coming.
But for all that gloom and doom, Pete Najarian had a fun day trading. He also thinks the financial sector is in big trouble and he is extremely worried about
General Motors
(GM) - Get Report
which fell below $27.(Here's one way to assemble a defensive portfolio on Stockpickr.com
.)
Technical Take with Louise Yamada
Louise Yamada, a highly ranked technician on Wall Street, joined the "Fast Money" crew to discuss her analysis on the technicals of the market. Yamada is currently worried that the S&P 500 could break 1406, which would signal to her an end of the longer-term uptrend. She also mentioned that if the market can muster up a Santa Claus rally it will be a weak one. Yamada is still bullish on
Cisco Systems
(CSCO) - Get Report
and she would look to buy pullbacks on the name.
She wasn't so thrilled about the chart on
Broadcom
(BRCM)
calling it a sell because it hasn't followed through after a false break-out. The chart on
Coca-Cola
(KO) - Get Report
is initiating an uptrend according to Yamada, so she would be a buyer of KO. The last chart she examined was
Bed Bath and Beyond
(BBBY) - Get Report
and the chart is suggesting that BBBY should be sold.
Gift Ideas for Retail Stocks
Nordstrom
(JWN) - Get Report
reported a 22% rise in third-quarter profits helped by an extra week of sales. Macke thinks Nordstrom is a really cheap stock. Finerman was surprised that Nordstrom guided higher and that stock now has her interest.
Sears Holdings
(SHLD)
disclosed it has taken a 13.7% stake in
Restoration Hardware
(RSTO)
and the possibility of proposing an acquisition. Macke thinks this is great for Restoration Hardware shareholders. Finerman finds it interesting and a takeover seems possible.
Target
(TGT) - Get Report
is set to report earnings Tuesday before the opening bell. Najarian noted that he is seeing a high volume of call buying versus put buying in the options pits for Target. He saw 55,000 calls versus 10,000 puts traded by noon Monday and this could be forecasting a positive stock reaction. Macke agrees that a trade in Target could work and he feels that traders in the options pits are betting they'll report positive numbers. Finerman comments that Target might take the sale of their credit card business off the table here.
Hewlett-Packard
(HPQ) - Get Report
reported a 28% jump in profits off of strong notebook PC sales. Adami thinks Hewlett is a great growth story and investors should buy when the stock dips down before it trades to the mid-$50's. Najarian likes that only 10% of Hewlett's profits come from the financial sector.
Medtronic
(MDT) - Get Report
reported a 2% decline in profits, but the stock trades 3% higher after hours. Najarian was positive on the name, but he wants to get more color on how well some of the firm's acquisitions are performing
Lowe's
(LOW) - Get Report
falls 7% after reporting a 10% decline in profits due to the weak housing market. Adami thinks a bottom is getting close for Lowe's. Finerman is amused that both
Home Depot
(HD) - Get Report
and Lowe's thinks they're taking market share from the other.
Celgene>
(CELG) - Get Report
buys
Pharmion
(PHRM)
for $2.9 billion. According to Najarian, Celgene paid a huge premium in this deal, but it might be worth it for Pharmion's strong pipeline. Adami thinks the only thing that can save
Pfizer
(PFE) - Get Report
is to make acquisitions like Celgene is doing.
EchoStar
(DISH) - Get Report
shares exploded higher Monday after Citigroup ssaid there was a 65% chance that
AT&T
(T) - Get Report
will buy DISH. Macke tells investors to sell DISH in the upper $40's and buy it back near $40.
Ultimate Fighting Trade
Ultimate Fighting is now the fasting growing spectator sport in the United States cashing in on America's appetite for violence. Jeff Macke attended the "UFC 78: Validation" this weekend to look for investing ideas. Macke would look for growth in cable companies and satellite companies like
Viacom
(VIA.B)
and EchoStar. He also thinks makers of energy drinks like Coca-Cola will benefit. One company he would avoid is the
World Wrestling Entertainment
(WWE) - Get Report
because the UFC is taking share. Lastly, Macke speculated that
Anheuser-Busch
(BUD) - Get Report
could be near a beverage deal with the UFC.
Happy 52-Week High
Altria
(MO) - Get Report
Pops & Drops
Pops -
Xerox
(XRX) - Get Report
traded up 2%. Adami comments that Hewlett-Packard is eating Xerox's lunch.
Intercontinental Exchange
traded up 3% off a positive Barron's article. Finerman says the story isn't over for the exchange stocks.
VeriSign
(VRSN) - Get Report
traded up 2%. Najarian likes that VRSN is going to focus on internet security.
Drops -
E*TRADE
(ETFC) - Get Report
fell 13% even with speculation of a takeover by
Ameritrade
(AMTD) - Get Report
making the rounds. Finerman wouldn't touch it.
Wynn Resorts
(WYNN) - Get Report
fell 7% off a negative Barron's article. Najarian thinks that emerging markets are hurting WYNN.
Genesco
(GCO) - Get Report
plunged 24%. The CEO denied allegations by UBS that the company defrauded UBS after agreeing to a $1.5 billion takeover. Finerman counsels investors that if they want to play GCO, only do it with options.
Disney
(DIS) - Get Report
fell 4%. Macke is optimistic DIS will snap back.
General Motors
(GM) - Get Report
fell 8% after the automaker announced plans for year-end discounts to clear out inventory. Adami remarks that if the short interest on GM gets into the low teens, then it's time to buy it.
Dillard's
(DDS) - Get Report
fell 5%. Macke wouldn't touch this stock.
Tween Brands
(TWB)
fell 13% after the teen retailer cut its profit outlook. Macke does not recommend viewers buy this stock..
Final Trade
The team signs off another down day with their best trade suggestions for viewers.
- Macke would purchase Dicks' Sporting Goods (DKS) - Get Report and Target on any selloff Tuesday.
- Najarian advises buying EchoStar (DISH) - Get Report on a pullback under $44.
- Finerman is sticking with long Goldman Sachs Group (GS) - Get Report and short Lehman Brothers Holdings (LEH) .
- Adami recommendsVodafone Group (VOD) - Get Report for a play on China.
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