As investors look toward August and the autumn, they can’t help but wonder if the second half of ’08 will be better than the first.
The most recent write-down at Merrill as well as the turnaround in the overall banking sector has created some optimism that the bottom may be in for banks.
Oil prices are down nearly 20% from their record highs, leaving some energy investors to call a bear market. However, others caution it’s nothing more than a much needed correction.
And the recent spat of earnings suggests the consumer is okay, but that could be disguised by the economic stimulus checks.
What’s going to happen in August?
I think the bottom is in for financials, says Jon Najarian on Fast Money. I’m encouraged by the recent debt clearing that’s gone on in the financial services sector. I particularly like Prudential , he says, as well as AIG for unusual call buying.
I’d avoid AIG, counters Guy Adami. They’re not only an insurance company; they're also involved in financials services products.
Sell the rip and buy the dip, exclaims Jeff Macke. The only thing that’s going to get you buried is staying long in this market. Rent stocks in August but don't own them.
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Trader disclosure: On July 31, 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 (EMC), (DIS), (ATVID), (MSFT); Adami Owns (C), (AGU), (BTU), (GS), (INTC), (MSFT), (NUE); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (SUN), (TSO), (TYC), (VLO), (RIG), (UFS); Finerman's Firm And Finerman Own (C) Leaps; Finerman's Firm Is Short (XLF), (BBT), (IYR), (IJR), (MDY), (SPY), (IWM), (COF); Seymour Owns (AAPL), (CSCO), (F), (MER), (MSFT), (INTC); Seygem Asset Management Owns (VIP), Gazprom; Seygem Asset Management Is Short (RSX)
Jon Najarian Has Long Call Positions In (AIG); Jon Najarian Owns (BRK.B); Jon Najarian Owns (PG) And (PG) Call Spreads