FAST AT THE HALF: IS BANK BOUNCE OVER?
By mid-session Friday shares of Morgan Stanely were charging higher, with investors betting that this firm, like some other banks, could wow the Street when they report earnings, next week.
However, shares of Citigroup dropped as news of a smaller-than-expected first-quarter loss was overshadowed by comments from the company that consumer credit deterioration remained a worry.
Strategy Session with the Fast Money Traders
I think there’s one trade left in the financial sector, says Joe Terranova and it’s long Morgan Stanley. I’m looking for Morgan to make a bunch of money in fixed income trading.
I agree with Joe, 100%, adds Jon Najarian. I think their trading business has been spectacular and I expect it will be reflected in their earnings. I am however a little cautious of Bank of America . Commercial restate could be an issue for them.
Is all the news out, questions Scott Nations. Bank CEOs came out weeks ago and told the Street to expect strength. If that’s what’s driving the rally then the bounce is over.
With the BKX Index up something like 10% in a week, you’d think the rally in banks is getting tired, adds Dan Fitzpatrick. But banks just keep going higher. I’ve been looking for a top in banks for quite a while and I haven’t seen it.
GAGA FOR GOOGLE
On the Nasdaq investors paused after a recent strong run up, to assess the prospects for the tech sector after Google's chief executive said the economy remains tough with the search giant posting modest gains by lunchtime.
It seems to me that Google is not going to reverse and roll over, muses Joe Terranova. They are growing and a premium is paid for growth. I think Google shoots above $400 next week.
I think Joe’s right, echoes Jon Najarian. Google should continue to drive higher in the long run, but I’d let the stock rest for the next 30 days. You’ll probably be able to buy it lower.
If you want an Internet trade, I’d look at Bidu says Dan Fitzpatick. Patterns in the charts appear to be bullish. I’m looking for upside to about $260.
HUGE TECH EARNINGS NEXT WEEK
Investors are bracing for a deluge of earnings data from the tech sector next week. Here’s just a smattering of what’s expected.
Mon. Apr. 20th: IBM, Texas Instruments
Tue. Apr. 21st : AMD, SanDisk, Broadcom, Yahoo!
Wed. Apr. 22nd: Apple Ebay, EMC
Thr. Apr. 23rd: Microsoft, Amazon
What's the trade?
I think it’s all about IBM , says Joe Terranova. I’m a buyer ahead of earnings.
I’d look at Amazon , adds Dan Fitzpatrick. I think it goes higher.
I’m trading into long positions in IBM and Applenext week, reveals Jon Najarian. But there is no unusual options action.
COMMODITIES: CANARY IN THE COAL MINE?
Copper futures traded lower for a second day on Friday , after data showing a slower rate of expansion in China's economy and a steep decline in U.S. housing starts encouraged some investor profit-taking.
It seems to me it’s probably time to take some off the table, counsels Tim Seymour. I’m concerned about the copper plays.
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CNBC.com with wires