Getting Gas From Fed Decision
It seems everyone and their mother has a Fed decision trade. An analyst at Citigroup recommends clients buy industrial gas stocks such as Praxair (PX), Air Products (APD) and PPG Industries (PPG).
He explains that historically, these stocks tend to jump 23% in the 12 months after a Fed rate cut as investors get defensive and buy companies that supply crucial chemicals to industry.
Guy Adami says these companies service a broad range of industries including the automakers, the airlines and more. Then, he tells the panel that he feels the Citigroup recommendation makes sense.
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Trader disclosure: On Sept. 17, 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 (EMC); Najarian Owns (VMW); Najarian Is Short (ETFC); Najarian Owns (GS) Options: Finerman's Firm Owns (TXI), (WMT), (TGT), (COP); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; GE Is The Parent Company Of CNBC