'Fast Money' Recap: November Outlook
NEW YORK (
) -- The markets ended October on a sour note.
The
Dow Jones Industrial Average
slid 276.10, or 2.26%, to 11,955.01. The
S&P 500
fell 31.79, or 2.47%, to 1253.30. The
Nasdaq
fell 52.74, or 1.93%, to 2684.41.
Melissa Lee, the moderator of
CNBC
's "Fast Money" TV show, said the S&P enjoyed its best monthly percentage gain in October, despite today's reversal.
Looking ahead, Joe Terranova said the "ultimate question" for investors is how long are they going to be in this market after a day like this. He said the market needs to hold at 1229.
For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
3 Stocks I Saw on TV |
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Brian Kelly said the rally can continue if the Federal Open Market Committee provides some hints that the
Fed
will print money.
Karen Finerman disagreed, saying the market's future direction hinges not on QE3 but on the outcome of Europe's debt crisis, which is far from over.
Dan Nathan said investors should look for opportunities to get into stocks on pullbacks.
Chris Verrone, a director at Strategas Research Partners, said there should be a buying opportunity if the S&P pulls back to a base at 1190 to 1200. He particularly liked the stable chart action of stocks such as
Nike
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,
Cisco
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and
PL Corp
(PPL) - Get PPL Corporation Report
.
Lee shifted to a major stock of the day: the filing for Chapter 11 bankruptcy by
MF Global Holdings
( MF).
David Greenberg, founder of Greenberg Capital, said a crisis of investor confidence did in the company. He said a lot of traders were frozen by the bankruptcy move. He said there may be some very large MF Global customers that will be vulnerable if clearinghouses don't want to take on the risk of dealing with them. He said that could have a impact on the market.
He said the
CME Group
(CME) - Get CME Group Inc. Class A Report
and CFTC could have avoided the situation by taking action. He also said
Interactive Brokers
(CME) - Get CME Group Inc. Class A Report
is in a good position to pick up some clients from MF Global.
Shifting briefly to the energy space, Terranova said he would use the pullback in
Anadarko
(APC) - Get Anadarko Petroleum Corporation Report
to pick up the stock, which is up 25% this month.
Lee noted reports that Reliance Industries was not going to bid for
Valero
(VLO) - Get Valero Energy Corporation Report
. Both Terranova and Weiss said it was a good opportunity to buy Valero on the strength of its fundamentals.
Shifting to the currency trade, Todd Gordon, co-head of research for the Aspen Trading Group, reversed his position from last week when he was a buyer of the Australian dollar. Today, he was in risk-off mode, with a trade that called for selling the Australian dollar and buying the yen.
Is the huge storm that hit the Northeast going to set back retail sales? Evan Gold, of Planalytics.com, didn't think so. He said the storm will cause consumers to push up the timetable for buying winter gear such as boots and sweaters.
Terranova said he liked
Deckers
(DECK) - Get Deckers Outdoor Corporation Report
and
Amazon.com
(AMZN) - Get Amazon.com, Inc. Report
for trades. Nathan agreed but advised investors to wait for the stocks to come back to them.
Switching to commodities and the gold, which was down more than 1% today, Terranova said it wasn't the right time to be in the gold or silver trade. He said the better trade to be in is copper, which he believes will give investors the temperature for risk for the next couple of months.
Kelly was the other side of the trade, saying gold would be the trade if central banks start printing money.
Has investor enthusiasm for the European bailout fizzled? Dennis Gartman said it would be naïve to believe that China would step in bail out the Europeans. He said it would be there for support but it would not be foolish enough to throw money down a hole. He also said it would ask for concessions if it did offer help.
Lee referred to a report Youtube was launching 100 online video channels. Kelly didn't see the move as a threat to
Netflix
(NFLX) - Get Netflix, Inc. Report
as it will be for Hulu. Weiss, though, said the move was "another nail in the coffin" for Netflix because it's free entertainment that Youtube is going to subsidize for two to three years.
In the final moves, Weiss was going with the
ProShares Ultr Short Euro ETF
(EUO) - Get ProShares UltraShort Euro Report
. Kelly liked
Golar LNG
(GLNG) - Get Golar LNG Limited Report
while Finerman liked
CF Industries
(CF) - Get CF Industries Holdings, Inc. Report
going into earnings. Terranova said to take a look at
Juniper Networks
(JNPR) - Get Juniper Networks, Inc. Report
.
--
Written by David Tong in San Francisco.
>To contact the writer of this article, click here:
David Tong
.
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