Olympics vs. Rat
There are competing theories about China’s performance in 2008. On the one hand, the ‘Olympics Put’ theory holds that China will ensure strength through the Beijing Olympics. But the ‘Year of the Rat’ theory predicts losses in a ‘highly competitive year.’
The traders aren’t superstitious enough to believe in the Rat theory, but agree that China should remain a hot market at least through the summer games. Guy Adami said China Mobile , perhaps the best example of a Chinese growth stock, should continue to rip higher in 2008. He would buy the EWT ETF that covers Taiwan as well using the Olympics as a catalyst for growth and economic support for China and Taiwan.
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Trader disclosure: On Feb.5, 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 (YHOO), (DIS), (INTC); Finerman Owns (GS); Finerman's Firm Owns (NMX), (RTP), (SKS), (TSO), (TYC), (VLO), (WMT), (SUN); Finerman's Firm Owns (YHOO) And (YHOO) Calls; Finerman's Firm Is Short (SPY), (IJR), (IYR), (IWM), (MDY), (CME), (COF), (BHP); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Jon Najarian Owns (CME), (DIS), (MRK), (CMC), (YRCW); Jon Najarian Is Short (AIG), (XOM); Jon Najarian Has A Protected Long Position In (XLF) Through Options