A stronger dollar can weaken commodity markets by cutting into the purchasing power of buyers using other currencies
What’s the commodities play now?
I think crude is a little toppy here and I’d take profits in stocks levered to oil, counsels Steve Grasso.
I also think we’ve likely seen the top in oil, speculates strategic investor Dennis Gartman. I would probably go from a bullish position to a neutral position.
Right now oil is not going up on fundamentals, explains Joe Terranova, it’s going up on the demand for the paper asset. It seems to me that momentum could create a bubble.
MONSTER BANK RALLY FROM MARCH LOSING MOMENTUM
Investors are looking for positive catalysts to take bank stocks higher. The sector is up more than 50% since the March lows but now appears somewhat stalled with some investors fearing a correction may be near.
Meanwhile, Bank of America -Merrill Lynch Research said repayment of federal funds by Goldman Sachs, JPMorgan and Morgan Stanley will force a reversal of value for the remaining warrants – and as a result -- they cut second-quarter profit estimates.
Company Name New Estimate Old Estimate
Goldman Sachs $2.92 $3.59
Morgan Stanley $0.23 $0.70
JPMorgan $0.01 $0.30
In the space I’d be careful, counsels Jeff Macke. These stocks are tired and need a rest.
I’m watching Jeffries , adds Guy Adami. I think it’s a buy on a dip.
FINK THE NEW KING OF WALL STREET?
BlackRock said on Thursday it will buy British bank Barclays investment arm BGI for $13.5 billion in a blockbuster deal that will create the world's biggest asset manager.
For BlackRock, a 21-year old company which relied heavily on acquisitions to grow from a one-room bond investment firm into the largest publicly traded U.S. money manager, the deal will more than double assets to roughly $2.7 trillion.
It will also give New York-based BlackRock, well-known for working with governments and institutional clients, access to retail investors and the hugely popular exchange traded funds San Francisco-based Barclays Global Investors offers.
What’s the trade?
I think valuations are rich but it seems like momentum will take BlackRock higher, says Guy Adami.
Conversely I think Barclay’s could go even lower, muses Pete Najarian.
OPTIONS ACTION: TIVO
Pete Najarian has spotted unusual options activity in TiVo.
The call volume in this stock suggests to me TiVo could move higher, explains the Pit Boss.
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Trader disclosure: On June 12th, 2009, 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 (AGU), (USO), (BAC); Najarian Owns (FCX) Call Spread; Najarian Owns (MCD) Calls; Najarian Owns (RCL) Calls; Adami Owns (AGU), (BTU), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Owns (TER), (XBI), (SDS), (BTU), (RIMM); Terranova Owns (X) And Is Short (X) Calls; Terranova Owns (MS) And Is Short (MS) Calls; Terranova Owns (JPM) And Is Short (JPM) Calls; Terranova Owns (POT) And Is Short (POT) Calls; Terranova Owns (BRCM) And Is Short (BRCM) Calls; Terranova Owns (IBM) And Is Short (IBM) Calls; Terranova Owns (HES) And Is Short (HES) Calls; Terranova Owns (GENZ) And Is Short (GENZ) Calls; Terranova Is Short (OIH); Terranova Is Short (RIG); Terranova Is Short (XOM) Call Spreads; Terranova Owns (DIS) Call Spreads; Terranova Is Short Aug. Nymex Crude Oil; Terranova Is Short September Nymex Crude Oil; Terranova Is Short December Nymex Crude Oil; Terranova Owns December 2011 Nymex Crude Oil; Terranova Is Short August Gold Futures; Terranova Is Short July Natural Gas Futures
Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV); Virtus Investment Partners Owns More Than 1% Of (ABD), (CAL), (CLB), (DLR), (EPR), (EXR), (IGE), (MEE), (DBC), (DBV), (DBA), (SKT), (UA), (WBMD); Virtus Investment Partners Owns More Than 1% Of St Mary Land & Exploration Co; Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights
For Steve Grasso
Grasso Owns (OXY)
Stuart Frankel Clients Own (SU)
Stuart Frankel Clients Own (PBR)
Stuart Frankel Clients Own (HES)
Stuart Frankel Clients Own (OXY)
For Dennis Gartman
Gartman And CIBC Gartman Index Own (DE)
Gartman And CIBC Gartman Index Own (AA)
Gartman And CIBC Gartman Index Own (FCX)
Gartman And CIBC Gartman Index Own (BX)
Gartman And CIBC Gartman Index Own (SDS)
Gartman And CIBC Gartman Index Are Short (BRK.B)
Gartman And CIBC Gartman Index Are Short S&P And NASDAQ Futures
Gartman And CIBC Gartman Index Own (PBR), (SU)
Gartman And CIBC Gartman Index Are Short (CVX), (XOM)
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