Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES

FAST MONEY FEATURES

PollFast Money PollsFAST MONEY POLL
Get in the post game.  Respond to our "Question of the Day" right now.




Full ShowFull ShowFULL SHOWS
Missed an episode of Fast Money?  Watch the lastest show here.




Trade SchoolTRADE SCHOOL
Grab a pencil because school is in session and the Fast Money traders are teaching class.



PodcastFM PodcastsFAST MONEY PODCASTS
Download Fast Money onto your MP3 Player.




FM WIDGETFAST MONEY WIDGET
Grab this all-in-one application and get recaps of the show sent right to your desktop or blog.




ShopSHOP FOR FAST MONEY MERCHANDISE
Get your game on with Fast Money gear.




Wanna See Our PhotosFAST MONEY PHOTOS!
Check out our scrapbook.  These "pix" are guaranteed winners.




SignupNewsletterNEWSLETTER
Sign up and receive a recap email every Friday after the show!





FM Mobile AlertFAST MONEY MOBILE ALERTS
Get advanced information about the next Fast Money.



Fast Money HomeFast Money Rapid RecapAbout Fast MoneyFast Money BiosFast Money Web ExtraFast Money Disclaimer
Text Size

OIL DROPS, STOCKS POP

The headline: Oil Drops The Most Since April

The Dow [.DJIA  Loading...      ()   ]ended higher on Tuesday, led by technology companies such as Apple [AAPL  Loading...      ()   ] as a sharp drop in crude oil prices rekindled hopes of increased consumer and business spending on tech gear.

----------------------------

IS THE OIL TOP IN?

The headline: Crude Oil Slips 2.5% To $128.85, Lowest Settle Price Since May 19.

A 2.6 percent drop in oil prices [US@CL.1  Loading...      ()   ] to almost $128 a barrel was welcomed by stock market investors after crude hit a record above $135 last week, a spike that fanned worries about inflation and the outlook for corporate profits.

Whether it’s a bubble or whether the top is already in, I think the oil trade could get ugly.

The UltraShort Oil & Gas ProShares [DUG  Loading...      ()   ] which trades inversely to oil closed higher, adds Guy Adami. That could signal the short term top to this trade.

I’d look at the oil services and exploration stocks, adds Pete Najarian. I like Baker Hughes [BHI  Loading...      ()   ].



----------------------------

APPLE, CHIP STOCKS BOOST TECH

The headline: Apple, Chip Shares Trade Higher After Industry Group Cites Growing Demand For Electronics.

Shares of Apple [AAPL  Loading...      ()   ], the maker of the iPhone and the iPod, jumped 2 percent, while Google [GOOG  Loading...      ()   ], the leading Internet search company, gained almost 3 percent on hopes that as oil prices settle, consumers and corporation will become more willing to open their wallets.

I think we’re in an early stage of a tech recovery, says Guy Adami. But I wouldn’t rush in right now, either.

Look at Cisco [CSCO  Loading...      ()   ] and Juniper [JNPR  Loading...      ()   ] for the 3G buildout, counsels Pete Najarian.

----------------------------

HEX ON MOBIL?

The headline: Exxon Mobil Leads Energy Stocks Lower Ahead Of Annual Meeting Wednesday.

Exxon Mobil [XOM  Loading...      ()   ] chairman and CEO Rex Tillerson will have a fight on his hands Wednesday as descendants of John D. Rockefeller, the founder of Exxon Mobil attempt to separate the jobs of chairman and CEO.

Separating the leadership roles, they argue, would better position the company for challenges to come.

The Rockefellers want Exxon to put money into alternative fuels, exclaims Jeff Macke. That doesn’t make sense, they’re an oil company!

They have so much money, I think they’re doing the right thing by diversifying counters Karen Finerman.

XOM would look attractive to me with an $86 handle, adds Guy Adami.

----------------------------

OPTIONS ACTION: BANK OF AMERICA

The headline: Pete Seeing Heavy Put-Buying In Bank Of America.

I see put heavy put buying in Bank of America [BAC  Loading...      ()   ], reveals Pete Najarian. That suggests to me that there could be more downside in the financials.

Meanwhile, Bank of America forecast a second-quarter loss for Lehman Brothers [LEH  Loading...      ()   ] and cut its earnings outlook for Morgan Stanley [MS  Loading...      ()   ] and Goldman Sachs [GS  Loading...      ()   ], and said brokers may continue to underperform in the current challenged credit environment.

If you want to trade the space, I’d look at American Express [AXP  Loading...      ()   ], Visa [V  Loading...      ()   ] or Mastercard [MA  Loading...      ()   ], adds Najarian.

----------------------------

GM HITS 27-YEAR LOW

The headline: GM Shares Sink To Lowest Since 1981 On Citigroup Downgrade.

Shares of General Motors [GM  Loading...      ()   ]closed lower Tuesday following a downgrade of the company's stock. Citi Investment Research analyst Itay Michaeli cut his rating on the Detroit company to "Hold" from "Buy" and slashed his price target to $21 from $32, saying the automaker will likely burn through $7 billion in cash through 2009 and may need to raise more capital.

If you want to play this space go downstream and look at Borg Warner [BWA  Loading...      ()   ], says Guy Adami, as well as American Axel [AXL  Loading...      ()   ].

----------------------------

CHINA NEEDS YOU

The headline:Cash-Strapped U.S. Consumer May Spell the End To China Trade.

The idea of de-coupling (that China can grow without the U.S.) is just plain false says Steve Cortes, Veracruz CEO. My research suggests that China’s growth is unsustainable without the American consumer. And the US consumer is badly wounded. Subsequently, I think the bullish pro-China story is ending.

How do you trade it?

I also think the dollar is finally stabilizing, Cortes adds. In other words I expect it to get stronger against other currencies. If you agree with my thesis you might want to short iShares FTSE/Xinhua China 25 Index [FXI  Loading...      ()   ] and buy the SPDR Turst [SPY  Loading...      ()   ] against it.

I also like Humana [HUM  Loading...      ()   ] in healthcare as well as Wal-Mart [WMT  Loading...      ()   ] and Costco [COST  Loading...      ()   ] in basic retail.

















______________________________________________________
Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .

Trader disclosure: On May 27, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (INTC), (DIS), (MSFT), (EMC), (WMT); Adami Owns (C), (GS), (INTC), (MSFT), (AGU), (BTU), (NUE); Najarian Owns (AAPL), (BHI), (BUD), (TSO), (XLF), (HPQ) ; Najarian Owns (BAC) Puts; Najarian Owns (JNPR) Calls; Finerman Owns (GS); Finerman's Firm And Finerman Own (FLS), (HD); Finerman's Firm Owns (MSFT), (SUN), (TSO), (VLO), (AAPL); Finerman's Firm Owns SPX Index Puts; Finerman's Firm Owns (C) And (C) Leaps, Finerman Owns (C); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY)

Veracruz LLC Is Long USD vs. GBP; Veracruz LLC Is Short (FXI), (FNM), (XHB)

© 2009 CNBC.com

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 01:26:08 25 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:04:04 25 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 02:05:47 25 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:01:48 25 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters