Instant Insights with the Fast Money Traders
It seems to me that people are under-invested and earnings have been decent, muses Fast Money trader Tim Seymour. That’s what’s I think is driving the mid-day run higher in stocks.
Technically we had the pull back I was looking for, reveals Greg Troccoli of Opalesque. However, I still think we could get another 10% on the downside.
It seems to me the market could be relatively flat for a while, muses Zach Karabell of RiverTwice Research. I think investors should play stock picker and buy best of breed stocks such as IBM on dips. In my opinion big blue has 20% upside, but it’s a long-term hold.
I also like IBM, adds Jared Levy of Peak6 Investments. I like the 100-95 put spread and I’m a buyer at current levels.
I would not be a buyer of IBM unless it pulls back to about $92, counters Troccoli.
If you can wait, I’d wait, echoes Seymour.
WAL-MART FAILS TO WOW
Wal-Mart reported flat first-quarter earnings in line with analysts' estimates. Its chief executive said overall business was stable, adding that until unemployment eased, it remained cautiously optimistic about a timetable for the economic recovery.
I’d be careful playing retail, muses Zach Karabell. I wouldn’t rush into the consumer space.
I like Wal-Mart, counters Tim Seymour. They’re delivering and hitting their estimates. And their growth is coming from a consumer that will probably stay with them when the economy recovers.
I also think Wal-Mart will do well, adds Jared Levy. But I’m a seller of other retailers.
Bank shares are bouncing mid-day; should you buy into the close?
In the space I’d keep an eye on Key Corp, explains Jared Levy. And I like Goldman as a best of breed play.
I wouldn’t touch Goldman at these levels, counters Greg Troccoli. I think it goes down to $120. And I think JPMorgan is a buy at $27.
Oil fell toward $57 a barrel on Thursday after the International Energy Agency (IEA) forecast global oil consumption will fall this year at the fastest rate since 1981.
The Paris-based IEA, adviser to 28 industrialized nations on energy policy, said the rise in oil prices to a six-month high above $60 this week was due to sentiment rather than supply.
What's the trade?
It’s been a momentum trade but I think fundamentals will soon come back into play, says Addison Armstrong of Tradition Energy. As a result, I think it’s time to play oil from the short side. Demand is falling all around the world.
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Trader disclosure: On May 14th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders;
Seymour Is Short (NUE)
Seymour Owns (PBR)
Seymour OWns (TSL)
Karabell Owns (JPM)
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