Seymour saw some value in shares of JCP, pointing out that sentiment can change very quickly in stocks where there are a lot of short-sellers.
Finerman said the share buyback plan at Nordstrom (JWN) is likely improving the company’s forward guidance. She is still a buyer of Macy’s (M). Adami is also a buyer of Macy’s near current levels, and said investors could buy Nordstrom around $63.50 or $64.
Seymour called General Motors (GM) a long-term investment that has some short-term headwinds. He is long the stock and finds its valuation attractive.
Seymour remains positive on the global economy, saying Germany’s drop in GDP should be relatively short-lived.
Kelly suggested that there are “pockets” within the U.S. economy that will do well, regardless of what’s going on in Europe. Adami is a buyer of U.S. Treasury bonds.
Kelly said he is selling short Brent crude oil and he “plans to be in this one for a while.” He sold the December futures contracts. He also suggested investors could sell short the Canadian dollar and/or the iShares MSCI Canada ETF (EWC) because of its dependency on oil prices.
Seymour said a short position in the Canadian dollar or the CurrencyShares Canadian Dollar Trust ETF (FXC) is one of the best ways to play a long U.S. dollar position.
Kelly told investors not to bet against hedge fund manager Carl Icahn, who has a new position in Gannett (GCI). However, he said investors who want to buy the stock should wait for a pullback.
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Paul Hickey, co-founder of Bespoke Investment Group, said when the most heavily shorted stocks decline, it’s usually because investors are feeling “risk-averse.” He said SunEdison (SUNE) and Conversant (CNVR) could be two stocks that are ripe for a short-squeeze. He added that the last time the S&P 1500 had this high of a short-interest was in November 2012 before equities had a strong rally.