Sell the Rips
A huge rally in a precarious market could open up a window to unload dead-weight stocks at good prices. Fast Money’s Jon Najarian offered up his “trash” picks – stocks he would sell if the rally holds on Wednesday.
USO : This oil fund has rallied so dramatically that it’s due for a pullback, Jon said. He also noted that he saw increasingly heavy put buying in the stock, solidifying his belief that a sell off is imminent. After all, the USO moved $18 in the last month alone. Few things stay that hot forever. Check out the DUG ETF , he added, which is a leveraged short bet against oil.
Washington Mutual and Fannie Mae : Both these financials are becoming hotbeds of put activity, Jon said. On the flip side, student loan provider Sallie Mae is benefiting from heavy call buying. Why the disparity? As Jon put it, people can default on their home loans but not on their student loan payments.
Williams-Sonoma : After seeing a huge move higher on very little volume, Guy Adami predicted bad news could be coming in this retailer that would move its stock substantially lower.
Are you selling this rally? Tell us now! Answer the Charles Schwab Question of the Day.
Got something to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to email@example.com.
Trader disclosure: On Mar.11, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Pete Najarian Owns (AAPL), (AMAT), (BIIB), (C), (CSCO), (MS), (MSFT), (NOK), (XLF), (YHOO), (CPHD); Pete Najarian Owns (AA) Calls, (COP) Calls; Pete Najarian Owns (FNM) Puts; Finerman Owns (GS), Finerman's Firm Owns (AAPL), (AEO), (FNM), (GE), (JCP), (MO), (MSFT), (TSO), (VLO), (WMT), (YHOO); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Seymour Owns (CFC), (CSCO), (INTC), (MBI), (MSFT), (S), (TMA), (TSO), (TSM); Seygem Asset Management Owns (VIP); GE Is The Parent Company Of CNBC
Jon Najarian Owns (SLM)
Jon Najarian Is Short (WM), (WSM). (USO). (FNM)