The Fast Money Misfires
In a Fast Money first, viewers get the chance to hold the traders to the fire, grilling them on picks that haven’t paid.
Last week, Jeff Macke recommending shorting the Dow with the Short Dow30 ETF (DOG) on two occasions. The index went up over 2% this week, sending the DOG way down. Ed from Alabama asked Jeff, via webcam, if he stands by his call.
Jeff stressed that using ETFs to short the market should be used as short-term trades. Obviously, he blew it recommending the DOG last week but as a bigger lesson, investors shouldn’t get married to any of these short-term calls, he said.
Back in May, Guy Adami boldly stated that the NYMEX (NMX) would get bought by Labor Day. Morgan, a student at Penn State, reminded Guy that his deadline came and went and no takeover occurred. “Do you want to push your deadline back a little bit?” she asked.
Guy stood by his call. The date was wrong, he said, but the price won’t be. He thinks the NYMEX gets taken down at $162 by either the NYSE (NYX) or the Chicago Mercantile Exchange (CME). The only reason it hasn’t yet is because of market conditions, he said.
Mike writes via e-mail: Dear Fast Money Gang: Hey, what’s up with all the Under Armour (UA) commercials? I tune in every day for Fast Money and lately I can count on a commercial from one or all of you guys for Under Armour. I mean, the stock has gone nowhere lately.
Pete Najarian pointed out that he first mentioned UA back in late June when it was at $45. Now it’s a $60 stock. Maybe it hasn’t gone anywhere in the last or so, but Pete still recommends UA and thinks it’s on track to become "the next Nike (NKE)."
Last Tuesday, Karen Finerman recommended Home Depot (HD) – but the home improvement retail giant is down 7% since Karne’s most recent call. She still likes it and holds it herself as a long-term investment. Another giant buyback is probably coming, she said.
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Trader disclosure: On Sept. 14, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (INTC), (SWY); Najarian owns (CREE), (GS); Finerman’s Firm Owns S&P 500 Puts, Russell 2000 Puts, (BEAS), (ASD), Is Short (LEAP); Finerman’s Firm and Finerman Own (HD)
For the record: Finerman’s Firm Owned (DVA) on 8/3/07; Finerman’s Firm and Finerman Owned (HD) on 9/4/07; Najarian owned (UA) on 7/30/07