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