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Halftime Report: Stock Market's Stealth Advancers

Forget the broad market, the Fast Money traders suggest watching a handful of stealth advancers on Tuesday that could provide the market with new leadership.

What’s the trade?

I’m keeping a close eye on the industrials, explains Pete Najarian. The action in these stocks suggests they could become the new market leaders. In fact, the sector has performed well ever since Goldman said industrial activity is picking up and will continue the pace.

Specifically, I've got multinationals such as Cooper Industries and Textron on my radar.

I’ve got my eye on conglomerate GE , counsels Christopher Zook of CAZ. It’s above $15 which had been resistance. It's making moves I think are worth watching.

It seems that stocks leveraged to economy are trading higher on the back of good economic data and word from Fed chief that recession is likely over, adds host Melissa Lee.

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RETAIL TRADE

Stronger-than-expected retail sales failed to ignite a tailwind of optimism on Tuesday– although it’s widely believed that an uptick in consumer spending is crucial for the economic recovery to continue.

What’s the retail trade?

I’m not bullish on retail stocks, says Patty Edwards of Storehouse. I’m concerned about just how much money consumers have to spend. If you’re looking for a trade, I’d look at going short the higher beta names and going long the lower beta names such as Walmart .

If you’re trading the RTH you should know that it tends to magnify the moves in retail sector, adds Jared Levy of Peak6. If retail sales trend higher then the RTH should go higher but if we start to see a pullback I expect to see a sharp retracement in the RTH.

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FINANCIALS LOWER LED BY JPMORGAN

Financials traded lower on Tuesday after published reports suggested the government is looking to sell about one-third of its stake in Citigroup, acquired as part of its bailout.

Also, Discover and JPMorgan fell after reporting increases in credit-card write- offs - yet another drag on the sector.

What’s the trade?

I’d be cautious about the consumer finance stocks, counsels Patty Edwards. Right now people are focussed on paying their mortgages not their credit cards.

Long-term the Citi news should be positive but in the short term it’s negative, adds Christopher Zook.

I’d look atJPMorgan, adds Pete Najarian. The stock is flat on what’s fairly negative news. That suggests buyers still consider it a great name.

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TOPPING THE TAPE: YAHOO, EBAY LEAD INTERNET STOCKS HIGHER

Yahoo led the Internet space higher on Tuesday after Bernstein raised the stock to Outperform from Market Perform saying the company’s core business of online search is undervalued.

EBay also generated a strong tailwind after Piper Jaffray and UBS upgraded the stock citing momentum in its core marketplace business.

What’s the trade?

I’m a fan of Yahoo!, says Pete Najarian. All the negative was baked into the stock and then some. I think it should have more upside.

I think eBay has upside potential into the holidays, but I’d wait for the stock to pullback $2 -$3 then I’d establish a long position, counsels Jared Levy.

Going into the holiday season I’d rather bet on Amazon, counters Patty Edwards.

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GAMING STOCKS CONTINUE OUTPERFORM

It seems casino trades have turned into winning bets, lately. Shares of Wynn are now above $70 while Las Vegas Sands is heading towards $20. Should you let it ride or take some off the table?

What’s the trade?

The volatility in LVS and Wynn are extremely cheap, reveals Jon Najarian. If you want to let your bets ride, protect yourself with puts. It’s extremely cheap.


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Trader disclosure: On Sept. 15th, 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), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Seymour Owns (AA), (AAPL), (BAC), (BX), (FCX), (NOK), (RIG), (SBUX), (UNG); Finerman Owns (PDE), (RIG); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC); Finerman Owns (WFC) Preferred Shares; Finerman's Firm Owns (WMT), (RIG), (MSFT), (NOK), (PBR), (PDE), (BDK); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Najarian Owns (AAPL) & Short (AAPL) Calls; Najarian Owns (BAC) & Short (BAC) Calls; Najarian Owns (BUCY) & Short (BUCY) Calls: Najarian Owns (C) Calls: Najarian Owns (FCX), Owns (FCX) Put, Is Short (FCX) Calls; Najarian Owns (JPM) & Is Short (JPM) Calls; Najarian Owns (JOYG) & Short (JOYG) Calls; Najarian Owns (MS) And Is Short (MS) Call; Najarian Owns (MSFT) And Is Short (MSFT) Call; Najarian Owns (PALM) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (TEVA); Najarian Owns (V) & Short (V) Calls; Najarian Owns (WFC) Put Spread; Najarian Owns (YHOO) Calls

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