GO
Loading...

Tomorrow's Playbook - Plays Amid Panic & More

Tuesday, 22 Jan 2008 | 6:38 PM ET

#1 – The Golden Bear

Amid a global sell-off where should you put your money? Find out as we take the temperature of this irritable market.

Strategic investor Dennis Gartman, author of The Gartman Letter, joins the panel for this conversation. Following is a synopsis of his main points.

What do you anticipate in the morning?

I think it's going to be ugly Wednesday morning just because Apple (AAPL) missed Q2 expectations. Don't expect a pretty day, replies Gartman. I’m net short, just a tad.

Are we near the end of the bear market?

No. Since October each low has been lower and each high has been lower in the major indexes, he replies. Bear markets rarely end with “V” bottoms. Bear markets tend to end after you have a “V”, then you go down and check the bottom again and then lethargy sets in. I suspect this one will end the same way.

How do you trade it?

I’m long agriculture and gold, explains Gartman. Also I’m thinking about owning Potash (POT) and I will continue to own wheat, corn and soybeans. And I’m a seller of high tech and probably steel.

Tomorrow's Trades #1
Amid the global selloff, trading guru Dennis Gartman discusses how to play the commodities market, with the Fast Money team.

He adds, I think the US is in recession. It’s only a matter of time, when we look back and say it started late in the third quarter of 2007. And I think the rest of the world will be taken down with us slightly.


  Price   Change %Change
VOW3
---
POT
---


#2 - Is There Anyplace Safe In This World?

Which stocks can help you tap into foreign growth if the US enters a recession?

Despite the 5% and 10% declines seen around the world over the last few days, there could be opportunity in the BRIC names, says Tim Seymour.

With central banks lowering rates worldwide and sovereign wealth funds now moving their focus away from the U.S. and into faster growing economies I like this space, he adds. And on a valuation basis, they're still relatively cheap.

Specifically, check out iShares MSCI Emerging Markets ETF (EEM), as well as the infrastructure, oil & gas and consumer sectors in Russia, and India’s Tata Motors (TTM).

Resource companies such as Brazilian miner CVRD (RIO), Petrobras (PBR) and Gazprom are bellwethers and look cheap to me on a cash flow basis. I think they can withstand weakness, he adds.

Tomorrow's Trades #2
Tapping into foreign growth, with Tim Seymour, Seygem Capital Management and the Fast Money traders.

And I think the China story is alive and well. I would own the iShares FTSE/Xinhua China 25 Index (FXI) for the next 6 – 12 months.

  Price   Change %Change
725
---
PETR'
---
RIO
---


#3 Plays Amid The Panic

As investors panic you might find value. Find out were the Fast Money traders recommend building positions.

Macke: Wal-Mart (WMT)

I think the stock is behaving well, says Macke. And they’ve gotten their act together fundamentally.

Adami: Microsoft (MSFT)

The global PC story should remain in tact, says Adami, and Xbox sales could be surprisingly strong. Also Goldman just but this stock on its conviction buy list.

Najarian: ConocoPhillips (COP)

Sooner or later margins should improve, says Pete Najarian. If this stock dips toward $68 I say own it.

Finerman: Altria Group (MO)

We also bought refiners Tuesday, explains Karen Finerman.



______________________________________________________
Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.

Trader disclosure: On Jan 22, 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 (DIS), (YHOO), (INTC); Finerman Owns (GS), (M); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (MO), (SKS), (WMT), (YHOO); Finerman's Firm Is Short (IYR), (IWM), (SPY), (IJR), (MDY); Finerman's Firm And Finerman Own (CROX); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns (RIO) Puts; Najarian Owns (BIIB), (C), (CSCO), (MS), (MSFT); Najarian Owns (WM) Calls, (YHOO) Calls, (AAPL) Calls, (NSC) Calls; Gartman Owns (CIM), (AAPL), (UNG), (SJT), (GLD), (COIN), (SDS); Gartman Is Short (AMZN), (GOOG), (X), (RIMM); CIBC Gartman Index Owns Crude Oil, Natural Gas, Wheat, Corn, Soybeans, Gold; CIBC Gartman Index Is Long The EUR; Seygem Asset Management Owns (EEM), (TTM), (AMX), Gazprom, Unified Energy System of Russia

  Price   Change %Change
MO
---
COP
---
MSFT
---
WMT
---
PETR'
---
POT
---
AAPL
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report