'Fast Money' Recap: Voting for a Rally
Dylan Ratigan hosted CNBC's "Fast Money" show Tuesday night. He started the show with a discussion of the rally in the stock market today. He explained that today's rally was the biggest run on an Election Day in history.
Jeff Macke pointed out that the rally was across the board except for the dollar, which was weak. Tim Seymour said the "risk trade" is back on. Pete Najarian told viewers to look at how the volatility has come down on stocks such as
Goldman Sachs
(GS) - Get Goldman Sachs Group Inc. (The) Report
. Guy Adami said fundamentals are back in play and people are starting to regain their confidence in the U.S. equity markets. He says "the selling from redemptions appears to be over, but we are still in that range."
Seymour said to look at some of the steel names such as
ArcelorMittal
(MT) - Get Arcelor Mittal NY Registry Shares NEW Report
, which trades at two to three times earnings. Macke told viewers he sold
Burlington Northern
(BNI)
today.
He also said the dollar looks like it's coming into a "buyable level," and he said he would play it with the
PowerShares DB US Dollar
(UUP) - Get Invesco DB US Dollar Index Bullish Fund Report
around $25 per share. Seymour mentioned that he picked up some
TheStreet Recommends
UltraShort MSCI Emerging Markets ProShares
(EEV) - Get ProShares UltraShort MSCI Emerging Markets Report
to hedge against some of the stuff he is long.
Ratigan switched the conversation to the change in power coming for the Treasury once the presidential election is over. Adami said that if Barack Obama wins, he will name Larry Summers as the Treasury secretary by no later than Friday of this week. He says "bank stocks will outperform in the next 18 months."
Najarian mentioned that he bought some
Charles Schwab
(SCHW) - Get Charles Schwab Corporation (The) Report
today, because the online brokerage reported record numbers. He told viewers to look at
TD Ameritrade
(AMTD) - Get AMTD IDEA Group American Depositary Shares each representing one Class A Report
and
Fidelity
(FIS) - Get Fidelity National Information Services Inc. Report
, which also reported record online trading numbers.
Ratigan highlighted a chart of Goldman Sachs, which is down 58% on the year. He asked the traders, "What is going on at Goldman Sachs?" Adami said Goldman will figure out how to make money in the next year and the stock will recover. Macke called Goldman the "Sharon Stone of finance." Najarian says "the market is telling me that the problems at Goldman Sachs are starting to get lower." He also mentioned that "diversification" by CEO John Mack has saved
Morgan Stanley
(MS) - Get Morgan Stanley Report
for now.
The traders talked about some unusual options activity in
Starbucks
(SBUX) - Get Starbucks Corporation Report
. Najarian said over 16,000 December puts traded on Starbucks yesterday. He pointed out that the stock didn't trade up in yesterday or today's stock market rallies. Najarian says "the December 10 and 12 puts are seeing some aggressive buying."
Dem Super
CNBC's
Steve Liesman joined the traders to discuss whether a supermajority win in the Senate for the Democrats will scare the markets. He explained that the super majority will come down to Minnesota, Kentucky, Mississippi and Georgia. He said the most probable outcome is for the Democrats to win 58 seats and not the filibuster-proof 60 seats. He says, "If Obama wins, he will play the middle to keep the Senate in line."
Obama Trade
Jon Najarian of OptionsMonster.com joined the gang to talk about Obama's plan to spend $15 billion in the next decade on renewable energy. He said
Archer Daniels Midland
(ADM) - Get Archer-Daniels-Midland Company Report
is his top pick off this trend. He also likes
Agrium
(AGU)
and
Mosaic
(MOS) - Get Mosaic Company (The) Report
, because we will have to put stuff in the ground to grow renewable energy.
Najarian mentioned that Obama wrote a piece in the
Wall Street Journal
that was bullish on the broadband infrastructure build-out. He said to look at names like
Akamai Technologies
(AKAM) - Get Akamai Technologies Inc. Report
,
VeriSign
(VRSN) - Get VeriSign Inc. Report
and
Broadcom
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to play the potential build-out.
Cramer's Election Trades
Jim Cramer, co-founder and chairman of
TheStreet.com
and host of
CNBC's
"Mad Money," joined the traders to discuss how to trade the election. Cramer said the market is trading like both presidential candidates are going to win with
Exxon Mobil
(XOM) - Get Exxon Mobil Corporation Report
trading up and health care and biotech stocks trading down. He says "I want to sell the oils."
He mentioned that if oil goes down $2 tomorrow, then the alternative energy names will get slaughtered. Cramer said the rally in the infrastructure group is going further and the selling is over in
Foster Wheeler
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. He told viewers he wouldn't sell the tobacco stocks, because he is "hungry for yield."
Trader Radar
Shares of
Nissan Motor
(NSANY)
were among the most active names on the
Nasdaq
on Tuesday.
Final Trade
Macke said sell some Burlington Northern Santa Fe. Adami told viewers to check out
Becton Dickinson
(BDX) - Get Becton Dickinson and Company Report
. Seymour recommenced the UltraShort MSCI Emerging Markets ProShares. Najarian picked Charles Schwab.
This article was written by a staff member of TheStreet.com.
