COMMODITY STOCKS FALL ON GLOBAL GROWTH CONCERNS
Oil fell below $78 a barrel on Wednesday after a U.S. inventory report showed a surprise build in gasoline stocks, increasing doubts over demand from the world's largest fuel consumer.
Also, the dollar strengthened against a basket of currencies on Wednesday, adding pressure to oil prices. As the dollar rises, dollar-denominated crude becomes more expensive for holders of other currencies.
What’s the trade?
Look elsewhere in commodities. I think there’s a possibility that demand from China for raw materials, especially met coal, may be stronger than expected, muses Brian Kelly. And I'd play it by getting long ArcelorMittal , he adds. Around $34.50 it’s a buy.
In the short-term I think some coal names such as AKS and Nucor is probably over-sold, muses Jared Levy. I,too, think there is opportunity in the space.
TECH TRADE IN TROUBLE? NASDAQ NOW LOWER FOR OCT.
Of the major indexes, the tech heavy Nasdaq fared the worst after the WSJ linked Hector Ruiz, the former CEO of AMD to the insider-trading controversy at Galleon. However it doesn't seem like investors need much of an excuse to sell with the entire tech sector lower on the day.
What’s the trade?
The Nasdaq is now negative for October, reminds Jared Levy. Tech was the first to arrive and typically it’s the first to fall. I’d be a seller in the near-term.
OPTIONS ACTION: LVS
Jared Levy has spotted unusual selling activity in the Las Vegas Sands November 15 calls.
The action suggests to Levy that options investors are mildly bearish.
TRADE TO GO: MOTOROLA
Pete Najarian suggests putting Motorola on your radar. “I like the direction they’ve taken with the Droid. Maybe this is the gadget that can get it to the next level.”
CALL THE CLOSE
Jared Levy: I’m a seller
Danielle Hughes : I’m a seller
Brian Kelly : I’m a buyer into the close
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Trader disclosure: On October 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (BX), (EEM), (INTC), (MSFT), (FXI); Najarian Owns (BX) Call Spread; Najarian Owns (EXPE) Calls
Najarian Owns (GE) Calls; Najarian Owns (LAZ) & (LAZ) Puts; Najarian Owns (MYL); Najarian Owns (RIMM) Call Spread; Najarian Owns (YHOO) & (YHOO) Puts; Terranova Owns (IBM), (QCOM), (GS); Finerman Owns (PDE), (TGT), (WMT), (BAC); Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Owns (PDE), (PBR), (RIG); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO), (UNG);
For Deborah Weinswig
Citi Owns (TGT)
Citi Has Received Compensation for Investment Banking from (TGT)
(TGT) Has Been A Client Of Citi in the Past 12 Months
Citi Has Acted As Manager Of An Offering of Securities of (WMT)
Citi Has Received Compensation for Investment Banking from (WMT)
(WMT) Has Been A Client Of Citi in the Past 12 Months
Citi Is Market Maker in Shares of (WMT)
Sandler O'Neill Expects To Receive Compensation from (CME)
Sandler O'Neill Expects To Receive Compenation from (NYX)
For Brian Kelly
Kelly Owns (QCOM)
Kelly Owns (ORCL)
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