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Sell the Rips

Tuesday, 11 Mar 2008 | 6:27 PM ET

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.

Tomorrow's Trades #1
Discussing which stocks to sell following the Fed-induced pop, with with Jon Najarian, Optionsmonster.com and the Fast Money traders.

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.

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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)

  Price   Change %Change
DUG
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FNMA
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SLIM CPI NT
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USO
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WM
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WSM
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  • 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

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