Fast Money: Rapid Recap - The first and only official show synopsis
RSS FEED
RECENT POSTS
- Your First Move For Tuesday May 29th
- Chesapeake Should Rally Into $20’s: Pro Trader
- Najarian: Yahoo! a Must Own Stock
- Marc Faber: 100% Chance of Global Recession
- Your First Move For Friday May 25th
- Desperately Seeking Dividend Yield
- Tech Is Trying to Tell You Something: Terranova
- Charts Suggest S&P Revisits Flat on Year: Top Analyst
FAST MONEY FEATURES
FAST MONEY POLLGet in the post game. Respond to our "Question of the Day" right now.
TRADE SCHOOLGrab a pencil because school is in session and the Fast Money traders are teaching class.
FAST MONEY PODCASTSDownload Fast Money onto your MP3 Player.
FAST MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
SHOP FOR FAST MONEY MERCHANDISEGet your game on with Fast Money gear.
FAST MONEY PHOTOS!Check out our scrapbook. These "pix" are guaranteed winners.
NEWSLETTERSign up and receive a daily email from the Fast Money team!
FAST MONEY MOBILE ALERTSGet advanced information about the next Fast Money.
Is Market On Brink Of Major Correction?
Text Size 
Producer
 |
Two widely followed market strategists are both concerned that the market is over-extended.
Richard Bernstein who called the tech bubble and veteran trader Gary Kaminksy are both ringing bells of caution.
Bernstein’s Warning Signs
Bernstein has spotted three trends emerging that lead him to believe the next leg may be lower. They follow:
1. U.S. Dollar Breaks Out
Although a stronger dollar goes hand-in-hand with recovery it’s also bearish for commodities, making them more expensive for buyers holding other currencies.
And much like strategic investor Dennis Gartman said on the Halftime Report, we’re seeing a watershed shift in favor of the dollar and as a result there will be further pressure on commodities prices.
2. Rising Rates
The Fed has indicated that it intends to keep rates low for an extended period, however the Bank of China is tightening and that effectively reduces liquidity around the world.
3. Oil Prices Choke Consumer
Gas prices present a double whammy. Not only do lower prices at the pump have a real economic impact, but they also have a psychological impact making people feel more at ease opening their wallet. Bernstein says. "that's the critical thing." Energy spending as a percentage of income is creeping back to troublesome levels. If oil prices rise more quickly than incomes, recovery could be cut off.
"If you want to have a correction these type of things will cause one," Bernstein says. "And the only places to hide out are the dollar and Treasurys."
Market Is Exhausted, says Kaminsky
Meanwhile veteran trader Gary Kaminsky makes a similar argument using the price action in JPMorgan as his “market tell.’
He says JPM action shows 'how stocks that are over-owned and give-off even a whiff of caution can get sold pretty quickly.'
Because the underlying tone in the market right now is skittish, he’s nervous about Apple [AAPL Loading... ()] and Amazon [AMZN Loading... ()] and tech [XLK Loading... ()] in general because he says, "it's all over-owned."
But rather than expose yourself to company specific risks, Kaminsky says play it with a short position in QQQQ [QQQQ Loading... ()]. “I don’t want company specific risk; being short the Q’s gives you that visibility on the downside,” he explains.
And for what it's worth Kaminsky says he’d turn bullish if he saw upward earnings revisions, but until then, he’s betting that the tech trade is exhausted.
What do you think? We want to know!
Guy Adami is bearish on stocks for three other reasons. Click here to find out what's got him saying "we're going lower."
______________________________________________________
Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .
Trader disclosure: On January 21st, 2010, 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); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO), (UNG); Finerman Owns (AAPL); Finerman's Firm Owns (ACL), (CLX), (MSFT), (TGT), (WMT); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC), (BAC) Preferred; Finerman's Firm And Finerman Own (CVS); Finerman's Firm And Finerman Own (GOOG); Najarian Owns (CLF) Call Spread; Najarian Owns (HUM) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (MS); Najarian Owns (PFE); Najarian Owns (CIEN) Calls; Najarian Owns (STX) Call Spread; Najarian Owns (MRVL), Is Short (MRVL) Calls; Najarian Owned (INTC) Calls Today; Terranova Is Short (CMA), (ICE), (ESS), (JCI), (CAL), (AGU); Terranova Owns (BAC), (JPM), (XOM), (FTO), (FCX), (EMC), (AAPL), (DELL), (MSFT), (QCOM); Terranova Owns (XHB) March Puts; Terranova Owns (POT) February Puts
For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
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 (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (SKT)
For Gary Kaminsky
Kaminsy Is Short (QQQQ)
For Dennis Gartman
Funds Managed By Dennis Gartman Are Short Euro
Funds Managed By Dennis Gartman Are Short Euro, Long Gold, Long Canadian
Dollar
For Youssef Squali
Jefferies Is A Market Maker In (GOOG)
CNBC.com with wires
Data is a real-time snapshot *Data is delayed at least 15 minutes
