These stocks could soon hit the brakes: Traders

Strong runs for some transportation and machinery stocks this year may soon come to an end, "Fast Money" traders contended Wednesday.

Shares of rail company Kansas City Southern and industrial players Caterpillar and Deere have climbed at least 5 percent each this year. Amid continued uncertainty for commodities and emerging markets, those stocks could soon reverse course, traders said.

Kansas City Southern's stock closed Wednesday around $83.40 per share. After a run-up of nearly 12 percent this year, its shares look appealing as a short against $85 per share, argued trader Guy Adami.

Kansas City Southern freight train
Source: Kansas City Southern
Kansas City Southern freight train

While he believes the stock could dip, trader Tim Seymour noted that it could make a good play on weakness.

Trader Dan Nathan, meanwhile, sees short potential in both Deere and Caterpillar. The stocks have climbed nearly 9 and 6 percent this year, respectively.

He said that, despite gains this year, the shares remain in "massive downtrends."


Disclosures:

Guy Adami

Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.

Pete Najarian

Long AAPL, BAC, BMY, DIS, DISCA, GE, KMI, KMI-A, KO, MRK, PEP, PFE, SAVE, VIAB, he is long calls AAL, AMJ, CLF, CMCSA, DAL, EMR, EWZ, FDX, FIT, GDX, GM, HAIN, HBAN, HOG, IP, KSS, LC, MCD, MDLZ, MXIM, NRF, RHT, SCHW, SLV, SWN, UAL, USG, WYNN, XME, XOP, ZIOP, he is long puts DB, EWH, RIG, VLO.

Dan Nathan

Dan is long PFE buy-write, long TWTR, long UUP March calls, long GE May 28 puts, long JPM April puts, long XLP March put spread, long XRT March puts, long XLB March puts, long HD put butterfly, long QQQ puts, long INTC March/April put spread, long QCOM April put spreads.

Tim Seymour

Tim Seymour is long AAPL, BAC, BBRY, DO, F, FCX, GM, GOOGL, INTC, JCP, NKE, SINA, T, TWTR, VZ, XOM. Tim's firm is long BABA, BIDU, CLF, KO, MCD, PEP, PF, SAVE, SBUX, VALE, WMT,YHOO, short HYG, IWM.