OIL JOINS THE CENTURY CLUB
The headline: Oil Slips 1.3% After Hitting Record Intraday High of $100.09 Thursday; Crude Finishes Week with a Gain of 2%
The conventional wisdom says a slowing economy would depress oil prices but Guy Adami would buy a name like Jacobs Engineering (JEC) that is profiting off high energy prices. The stock was $39 last January and now it’s over $100.
Jon and Pete Najarian would both short refiners like Valero even with oil at par because raw materials are so high.
THEY’VE GOT THE POWER
The headline: Utilities Hold Strong in a Tough Tape This Week as Treasury Yields Decline
Public Service Enterprise Group – a Guy Adami favorite – remains a good safe harbor play, he said. But there’s likely not much room for upside as it’s already up 53% in a year.
NOBODY’S LEAVING HOME
The headline: Airlines, Auto Rental Companies, Casino Stocks Drop This Week on Recession Fears
Jeff Macke, nearly famous for repeatedly saying that anytime the market is open, it's a good time to sell the airlines, is changing his tune – kind of. He sees a trading bottom in United and recommended buying it for a trade and a trade only. Rental car companies, which are trading like they’re already in a recession, should be avoided at all costs, he said.
The headline: Financials Continue to Sell Off on Credit Crunch, Economic Growth Concerns
The investment banks finally cracked, Pete Najarian said. Goldman Sachs is under $200. Bear Stearns is facing a government investigation. Now is the time to buy puts on the brokers and the XLF , he said. A close below $28 on the XLF is “problematic.”
It’s too late to short the financials, Jeff Macke said. But it could be years too early to buy them.
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Trader disclosure: On Jan 4, 2008, 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), (YHOO); Pete Najarian Owns (CSCO), (MSFT); Pete Najarian Owns (AAPL) Options, (NEM) Options, (VLO) Options, (WEN) Options, (YHOO) Options; Jon Najarian Owns (ACI), (AG), (AGU), (BTU), (DE), (DELL), (MON), (MOO), (MOS), (POT), (WEN), (YHOO), (WLP); Jon Najarian Is Short (BSC), (KLAC), (VLO); Charles Schwab Is A Sponsor Of "Fast Money"