On
CNBC's
"Fast Money" TV show, the traders opened the show by speaking on today's market activity, specifically the financial sector and its bounce.
Jeff Macke led off by saying that right now, investors "have no idea" with financials and that betting on red or black gives you roughly the same odds as betting on the financial stocks.
Jon Najarian added that he has been noticing a lot of selling of puts and a lot of buying of calls in options activity.
Joe Terranova said that "what is troubling about financials is commercial mortgage-backed securities."
Guy Adami, speaking on
Lehman Brothers
( LEH), said "I don't trust this rally at all," and investors "did not see capitulation yesterday."
Suggesting a trade, Terranova weighed in, saying to take
Goldman Sachs
(GS) - Get Report
and
Morgan Stanley
(MS) - Get Report
long and to short any other financials.
Jon Najarian disagreed, saying that he likes
JPMorgan Chase
(JPM) - Get Report
the best.
Other Action
Briefly discussing
Hewlett-Packard
(HP) - Get Report
, Adami said that he believes this stock looks cheap from a valuation perspective and that yesterday's news was not tremendously impressive.
Moving into oil, Terranova said that today's inventory numbers show a "huge build in oil," and the "non-OPEC supply continues to decline." He said to "play integrated oil service names."
Adami, speaking on commodities, said "I still like the steel stocks," but we are in a "sell-the-rallies mode." He said to look at
US Steel
(X) - Get Report
.
Losing at the Casino
Next, moving into casinos having trouble, Macke brought up
MGM Mirage
(MGM) - Get Report
and
Las Vegas Sands
(LVS) - Get Report
. He said, "I think MGM is going to wish they were BP getting kicked out of Russia," referring to the shakedown happening in Macau.
Adami pointed out what he says is a short-covering round for
Boyd Gaming
(BYD) - Get Report
.
Macke said that Boyd Gaming has no Macau exposure but it does have a "half-done casino sitting in Vegas," which does not help.
Tech Takes
Moving on to tech stocks, Najarian said
Apple
(AAPL) - Get Report
and
Research In Motion
( RIMM) were "upgraded from everyone." He said that
Nvidia
(NVDA) - Get Report
and
Marvell Technology
(MRVL) - Get Report
"continue to rock."
Next, retailer
Target
(TGT) - Get Report
can be flipped now, according to Adami. He said that valuation wise, TGT is cheaper than
Wal-Mart
(WMT) - Get Report
.
Macke disagreed, saying that TGT has credit-card exposure and "has too many headwinds."
The Commodities Beat
Guest Dennis Gartman of
The Gartman Letter
came on Wednesday's show to discuss commodities. He said that it is "time to start taking a look," into the grains. He said that "when something does not go down when it is supposed to go down, it is probably going up."
When Gartman was asked if
Potash
(POT)
would be a good play for this, he affirmed it. He offered a couple of other ideas, namely
Suncor Energy
(SU) - Get Report
for energy and the
San Juan Basin Royalty Trust
(SJT) - Get Report
for natural gas.
Shifting back to technology, Gene Munster of Piper Jaffray spoke on Apple and its future. Munster said it is the "time to own," and that new products are coming. He said that its Mac business is growing at 40%-plus and that "people want their products." Munster summarized Apple by saying that in this rough economic time, "everything seems to be doing very well."
At the time of publication, Posluszny had no positions in the stocks mentioned.
Richard Posluszny is a finance major at Seton Hall. He provides invaluable research support as an intern at TheStreet.com.
