With February drawing to a close, watch for market wackiness on Friday as investors put this volatile month in the books.
Option trader Jon Najarian (Pete’s brother) and Fast Money regular joins the panel for this conversation.
Investors seem to be liquidating their short positions in some stocks, says Jon Najarian. We’re seeing it already in Ambac (ABK), MBIA (MBI), Fannie Mae (FNM) and Freddie Mac (FRE). When the shorts are out of the way, even stocks with bad earnings rally. I see the same kind of thing playing out the first few weeks in March with financials.
Watch Goldman Sachs (GS), U.S. Bancorp. (UBS), Credit Suisse (CS), and Lehman (LEH). – I think the shorts are giving up the ghost. That should be bullish for these stocks in the short term.
I don’t think investors should chase Goldmanjust yet, counters Jon’s brother Pete Najarian. The low has been about $157 and I think the stock could sink down to $160. If and when it does, then and only then do I think it’s a buy.