Friday's Stock Slide
Stocks fell sharply Friday after a series of economic and earnings reports and a further rise in oil prices stoked concerns about the health of economy. How should you be trading?
I think the market is under pressure from commodity investors who are taking profits, explains Pete Najarian. And that pressure is accelerating profit taking in financials and tech. That’s what took the market lower.
Investors should always have a hedge, says Karen Finerman, so days like Friday aren’t so scary. I look at days like this as an opportunity. Another big drop and I’ll be shopping for values.
Don’t chase stocks here, counsels Jeff Macke. But when you’re ready to trade you’ve go to be quick. The only traders making money in this market are quick. Otherwise they’re dead.
I think investors need to accept that fact that we’re in a bear market, Guy Adami says. The path of least resistance for the time being is lower. But that doesn’t mean that individual stocks can’t go higher. Look at the rails, coal and steel. In this market, I think they can go higher.
How do you trade it?
In this tape Jeff Macke likes The Gapand the United States Oil Fund.
Guy Adami prefers Burlington Northern.
Karen Finerman recommends Kaiser Aluminum.
Pete Najarian thinks coal stocks such as Arch Coal are a buy.