HALFTIME REPORT: RIDE THE TECH BANDWAGON
Stocks stumbled around lunchtime Friday with both the Dow and S&P trading in negative territory. Investors seemed to be digesting the flurry of economic data released over the past five days as well as the price action in oil, which ended the week about where it started.
However investors remained somewhat bullish on technology after Palm posted a smaller than expected loss and its CEO said, “Such significant growth means there is room for three to five players to win in this space. We don't have to beat each other to prosper."
How should you be positioned?
Instant Insights with the Fast Money Trader
I think the smartphone trade is clearly on, counsels Fast Money trader Joe Terranova. I’m a buyer of RIMM, right now. And I’ve been wrong on Palm. I thought it was going lower.
It’s quite possible the Nasdaq emerges as the true market leader, adds Brian Stutland of Stutland Equities. It seems to me big tech firms are cash rich and names like Oracle are in a strong position.
I’d say Oracle is a tad ahead of itself, counters Guy Adami. I think it’s a name that pulls back and I wouldn’t initiate a trade at these levels.
I agree that the Nasdaq is where the strength is, says Bill Strazzullo of Bell Curve. Key support levels are well below where the market is.
As for the broad market, when I look at a chart of the S&P I’m closely watching the 900 level which I think is an important technical level, he adds
Most positions have been accumulated around that level and if the market sits below 900, it’s a red flag. That sets up for a bigger picture liquidation to 850.
A comparable level in the Dow would be 8400. If we break below that level we probably take a ride down to 8000, Strazzulo says.
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OIL WEAKER AFTER TOPPING $70
Oil slipped below $70 a barrel Friday after Nigeria said it would halt a battle with rebels during a 60-day amnesty period.
The news reversed sharp gains made earlier in the week on news that militants had sabotaged a pipeline owned by Royal Dutch Shell.
What’s the trade?
Longer term I think the trade in oil is either flat or long, reveals Joe Terranova.
I’m a buyer of natural gas and a seller of oil, counsels Brian Stutland.
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THE ETF BOOM
On Friday’s Fast Money at 5p the traders talk ETFs. With Exchange Traded Funds nearing $1 trillion in assets, how can you work ETFs into your trading strategy?
Right now the traders are keeping a close eye on the XLF – the ETF that tracks the financials sector.
This ETF has been stuck in a range between $11 and $13, explains Bill Strazzullo. How it breaks from here will tell a lot not only about the financials but the broad market. If it breaks to the upside, the next stop should be $15 and if it breaks to the downside the next stop should be $10.
In financials I’m watching JPMorgan, adds Guy Adami. Right now the stock is trading in no-man’s land. Over the past few days I had been saying to short this name but now I think if it closes above $35.25 I’d get long.
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Trader disclosure: On June 26th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Terranova Owns (RIMM)
Stutland's Firm Owns (SPX)
Stutland is Short (USO)
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