'RealMoney' Radio Recap: Go With the Gurus

Filling in for Cramer, Aaron Task says it's not a bad time to listen to what Wall Street's saying.
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When the market starts acting funny, Aaron Task turns to the so-called Wall Street gurus for guidance.

Stocks acted strangely when they rose in response to yesterday's tenth straight

Fed

rate-hike, said Task, who filled in for James Cramer Wednesday on the

"RealMoney" radio show. And they continue to act oddly in the face of record high oil prices, which are growing ever more comfortable in the low $60 range.

During such times of confusion, Task, the co-executive editor for

TheStreet.com

, likes to hear what the big-money strategists on Wall Street are saying in their notes to customers.

One major concern throughout the analyst community is with regard to financial stocks. Most strategists are wary that the Fed will go too far in its rate-tightening policies. Task illustrated his point by pointing out that

Fannie Mae

(FNM)

is getting clobbered on restatement and delisting worries today.

"Fannie Mae is vital to the health of the real estate market," said Task.

The brain trust on Wall Street has also stated its concern about cyclical stocks like

Caterpillar

(CAT) - Get Report

and

Alcoa

(AA) - Get Report

, as well as transportation stocks, which are coming down from their highs.

Strategists like telecom stocks, which have higher dividends and reasonable valuations compared to utilities. The top picks at JP MorganChase are

Telefonica

(TEF) - Get Report

,

Sprint

(FON)

and

Lucent Technologies

(LU)

.

The gurus are also bullish on health care. The analyst at Bank of America likes

Alcon

(ACL)

and

Abbott Laboratories

(ABT) - Get Report

.

Finally, all the big guns like big, stable and most importantly, recession-proof names like

General Electric

(GE) - Get Report

and

Kellogg

(K) - Get Report

.

Nails on Board

Task's special guest was former New York Mets outfielder Lenny Dykstra. Dykstra said he likes

Cisco

(CSCO) - Get Report

despite the company's selloff today over soft guidance. Task said Cisco has technical support at $18.30, and Lenny said he would back up the truck if it hits those levels.

Dykstra -- known in his Mets days as 'Nails' -- also likes

Bank of America

(BAC) - Get Report

and

Tribune

(TRB)

. He plays these stocks by buying deep in the money calls.

"Options are not for the faint of heart or beginners," cautioned Task.

Callers Chime In

The first caller liked

Calpine

(CPN)

and was wondering if it would go bankrupt. Task said Calpine had a lot of cash-flow problems and investors may be best off avoiding it or at least taking profits.

Dykstra reminded listeners that you need to take tax losses as well. "Nobody bats a thousand," he said.

Another caller asked about Chinese internet player

Baidu.com

(BIDU) - Get Report

. Task suggested setting strict limits if you want to play this "extremely speculative stock." Dykstra said it was "dangerous territory" and best avoided.

"Why buy speculative stocks like Baidu when you can buy

General Electric

(GE) - Get Report

in the low $30's?" Dykstra said. "You know GE will eventually go up, but you can't say the same for a company like Baidu. I don't want to get my clock cleaned in a stock like Baidu."

If you have a long time horizon, then stick with

Google

(GOOG) - Get Report

. If you don't, then you may be able to get it a bit cheaper in the future as the stock meanders, said Task.

And Dykstra suggested that if you can't sleep at night holding Google, then find a different stock. "I was aggressive on the baseball field, but I'm conservative when it comes to trading," he said.

Aaron L. Task is the co-executive editor of TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. He invites you to send your feedback to

atask@thestreet.com.