Market Curveball: Swine Flu

Events surrounding swine flu are unfolding rapidly. The latest company to benefit emerged Thursday after China-based Sinovac Biotech received approval from Beijing to mass produce their vaccine for the H1N1 strain of flu.

Speculation ahead of that agreement sent shares of Sinovac soaring about 77% over the past two weeks.

And on Thursday the firm raised its sales forecast. “At the beginning of this year, we forecast our sales would rise by 20 percent," CEO Yin Weidong said. "Looking at things now, H1N1 has given us an opportunity, so the rise should be more than 20 percent."

And earlier in the week, President Obama urged Americans to take steps to prevent infection. "I don't want anybody to be alarmed, but I do want everyone to be prepared," he said.

The global swine flu epidemic first emerged in April, sickening more than 1 million Americans and killing about 500.

More than 2,000 people have died worldwide. Health officials are preparing for a surge in cases this fall, and one White House report from a panel of experts suggests up to half the U.S. population could catch swine flu during a pandemic

Considering all these recent developments, what’s the trade?

I’d look at Gilead for Tamaflu, counsels Guy Adami.

Look at Johnson & Johnson, the maker of Purell, adds Pete Najarian. Don’t be surprised if sales of Purell absolutely sky rocket.

If you really think swine flu is a serious issue I’d short hotels and travel stocks, adds Joe Terranova.

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Trader disclosure: On Sept. 3rd, 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) And Is Short (BAC) Calls; Najarian Owns (C) Calls; Najarian Owns (CBST) Call Spread; Najarian Owns (GS) Call Spread; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (PALM) Calls; Najarian Owns (PDE) Calls; Najarian Owns (SEPR) Time Spread; Najarian Owns (YHOO) Calls; Terranova Owns (FCX), (AMZN), (POT), (SU), (WFT); Terranova Owns December Gold Futures; Terranova Is Short (TM)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO
Virtus Diversifier PHOLIO Owns (IGE)
Virtus Diversifier PHOLIO Owns (DBC)
Virtus Diversifier PHOLIO Owns (DBV)
Virtus Investment Partners Owns More Than 1% Of (CAL)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (SKT)
Virtus Investment Partners Owns More Than 1% Of (TNB)
Virtus Investment Partners Owns More Than 1% Of (UA)
Virtus Investment Partners Owns More Than 1% Of (CLB)

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