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What Recession?

It seems economists are saying one thing while the stock market is saying another. Why are equities making 52-week highs if the economy is in serious trouble?

For some reason people think that in a recession stocks can’t go higher. That’s wrong, scolds Guy Adami.

But don't buy stocks at the top of their game, he counsels. If you’re looking for a play or two I recommend looking at early cycle names such as Easton Corp. and Illinois Tool Works which are not at their 52-week highs. But don't wait for a recovery to get into these names. If you do, you’ll be too late for these trades.

I don’t think you can interpret the 52-week highs, as everything is okay with the economy, counters Tim Seymour. The stocks hitting these highs are resource plays such as Apache , XTO Energy and Chesapeake . That sector is trading at much higher multiples now than anytime in memory and that's what's behind the recent 52-week highs, not strength in the economy.


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Trader disclosure: On Apr. 16, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (AAPL), (BIIB), (CSCO), (TSO), (YHOO), (XLF), (AMR), (ETFC), (ATI); Najarian Owns (EBAY) Calls, (IBM) Calls, (BSC) Calls, (COP) Calls, (MSFT) Calls, (HK) Calls; Najarian Is Short (INTC) Calls; Najarian Owns (LEH) Puts; Seymour Owns (AAPL), (CSCO), (INTC), (MER), (MSFT), (TSO); Seygem Asset Management Owns (TIE), (COP), (PKX), (GGB); Oppenheimer & Co. Is A Market Maker In (GOOG), (AMZN), (EBAY), (BIIB), (MLNM), (CSCO), (RIMM), (MSFT), (INTC); Oppenheimer & Co. Has Provided Investment Banking Services For (XTO) In The Past 12 Months; Oppenheimer & Co. Has Received Compensation For Investment Banking Services From (XTO) In The Past 12 Months; GE Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"

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