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Tuesday’s Hidden Trades: Microprocessors, Aussie ETFs & More

Published: Tuesday, 12 May 2009 | 3:41 PM ET

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By: JeeYeon Park
CNBC News Associate

David Lutz, managing director at Stifel Nicolaus, and Jim Iuorio, director at TJM Institutional Services, weighed in on the best places to invest now.

Recommendations:

Lutz Likes:

Seagate Technology [STX Loading... () ]

Western Digital [WDC Loading... () ]

“These [microprocessor stocks] are continuing to make ground,” Lutz told CNBC. “The pricing pressures that they’ve been saying that will get deteriorated are only getting stronger, which is good. We’re also seeing some increase in demand.”

Foster Wheeler [FWLT Loading... () ] —“Crude’s momentum is straight up and [Foster Wheeler] is a good play off of that,” he said. “This company’s going to benefit from any movement in crude pricing.”

Iuorio Likes:

iShares MSCI Australia Index Fund [EWA Loading... () ] —“They’ve got a big exposure to China, a major trading partner,” Iuorio said of the ETF. “There’s a ton of stimulus in China and a ton of infrastructure plays. Plus, it also gives you exposure to commodities.”

Family Dollar [FDO Loading... () ] —“The consumer is scarred and scared,” he said. “In the last two months, Family Dollar shares have pulled back a little bit…As the days go on and the pullback gets steeper, people are going to rotate back into stocks like that.”