Many people compare the market to a roller coaster ride. But we don’t think they’re right.
It should be compared to the Matterhorn bobsleds or those swings that go up in the air. Or, really, any of the amusement park rides that go sideways.
Because unlike a roller coaster than makes big moves up and down the traders think we’ll be stuck going round in circles, at least for a while.
It seems to me stocks have found resistance around 1010 in the S&P, explains Joe Terranova on the Halftime Report. I expect the market to trade between 950 and 1010 for a while.
However, that kind of sideways market action can generate some hot trades, ifyou’re nimble. And nobody’s more nimble than Jeff Tomasulo of SMB Capital.
Ahead of the broadcast Tomasulo suggested the following trades if stocks get stuck in a range. Here are his picks:
IBM: Tomasulo's a buyer at $116 and a seller at $120.
JPMorgan: Tomasulo is a buyer at $41 and a seller at $43.
McDonald's: Tomasulo is a buyer at $55 and a seller at $60.
SPDR: Tomasulo is a buyer at $99 and a seller at $102.
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Trader disclosure: On Aug 17th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (BAC); Najarian Owns (BBT) Call Spread; Najarian Owns (C) Calls; Najarian Owns (FCX), Is Short (FCX) Calls, Owns (FCX) Puts; Najarian Owns (HD) September And Is Short (HD) August Calls; Najarian Owns (HPQ) September Calls And Is Short (HPQ) August Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (UNH) Calls; Najarian Owns (YHOO) Call Spread; Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman's Firm Owns (MSFT), (TGT), (WMT), (CTX); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC), Finerman Owns (WFC) Preferred Shares; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (USO), (XRT); Finerman's Firm And Finerman Own (PDE); Seygem Asset Management Is Short (BIDU); Seymour Owns (AAPL); Seymour Owns (BAC); Seygem Asset Management Is Short (FXI)
For Jeff Tomasulo:
Tomasulo Is Short (IBM)
Tomasulo Owns (JPM)
For Pip Coburn:
Coburn's Fund Owns (AAPL), (ANSS), (ADBE), (SY)
Coburn's Fund Is Short (PALM)
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