Stocks remained in positive territory on Tuesday despite word from a German government spokesperson that reports of aid to Greece were unfounded.
The speculation of a bailout for Athens surfaced earlier in the session, and by lunchtime had pushed the Dow higher by triple digits; the market chatter also gave the euro its best day against the U.S. dollar in nearly a month.
But if there’s no bailout in the works, how should you be trading?
Instant Insights with the Fast Money traders
No matter what, I don’t think Greece is going to default on their debt, says Zach Karabell of Rivertwice. But there’s no question that the market is worried. If you’re like me and believe the global growth story remains in tact , use any dips generated by Greece as a buying opportunity.
I’d use Tuesday’s rally to get out of equities, counters Brian Kelly of Kanundrum. I don’t think the bounce in the euro can be sustained and that's bearish for stocks. For me the trade is short euros versus long dollars.
I’d also take profits, counsels Patty Edwards of Storehouse.
I don’t think this Greece thing is – one and done, adds Todd Gordon. Spain and Portugal could also be on the chopping block. I’d be a seller of stocks. Personally, I’m watching technical levels in the Dow, he adds. 10,097 is a critical level as is 10,133. If we get to those levels, I’d get short.
If you’re looking for a market ‘tell’ keep your eye on Goldman , says Pete Najarian. The second anything negative in the market comes up, Goldman tends to be among the first to react.
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TOPPING THE TAPE: COMMODITIES
On Tuesday commodities were the beneficiary of the weaker dollar with oil rising above $73 and gold rising above the technically important $1070 level.
What’s the trade?
I’m a buyer of coal names, says Pete Najarian. Put Peabody on the radar.
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SECTOR TRADE: BLUE CHIPS
Blue chips generated a strong tailwind on Tuesday with Coke reporting strong sales in China, India and Brazil.
It was a similar story for Dow component McDonald’s ; they too pointed to strength overseas as a driving factor behind January same-store sales.
What’s the trade?
I like both Coke and McDonald’s, says Patty Edwards, if only for dividends. Going forward these big uglies are going to have a winner in the beauty contest.
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CALL THE CLOSE
Pete Najarian: I’m skeptical.
Zach Karabell: I’m a buyer.
Patty Edwards: Take profits
Todd Gordon: I’m a seller.
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Trader disclosure: On February 9th, 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); Terranova Owns (JPM), (JPM) Feb. Call Spreads, (JPM) Feb. Calls; Terranova Owns (DELL), (EMC), (MSFT), (AAPL), (OIH); Terranova Owns (GOOG), Is Short (GOOG) Feb. calls; Pete Najarian Owns (AAPL) Call Spread; Pete Najarian Owns (DIS), Is Short (DIS) Calls; Pete Najarian Owns (MGM) Call Spread; Pete Najarian Owns (MS), Is Short (MS) Calls; Pete Najarian Owns (TCK), Is Short (TCK) CallsPete Najarian Owns (XLF) Calls; Pete Najarian Owns (PBR) Puts; Pete Najarian Owns (BTU) Call Spread; Seymour Owns (MPEL), (AAPL), (BAC), (EEM), (F), (FXI), (LVS), (MGM), (MSFT)
For Tim Seymour
Seygem Asset Management Owns (PBR)
Seygem Asset Management Is Short (BIDU)
Seygem Asset Management Owns (FCX)
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 (XLP)
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 Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (SPY)
Cantor Fitzgerald & Co. Is A Market Maker In (LVS)
Cantor Fitzgerald & Co. Is A Market Maker In (MGM)
Cantor Fitzgerald & Co. Is A Market Maker In (WYNN)
Cantor Fitzgerald & Co. Is A Market Maker In (GOOG)
Cantor Fitzgerald & Co. Is A Market Maker In (BIDU)
Cantor Fitzgerald & Co. Is A Market Maker In (YHOO)
Cantor Fitzgerald & Co. Is A Market Maker In (MSFT)
Other Relevant Disclosures:
Najarian Owned (DIS) And Was Short (DIS) Calls Today
Jon Najarian Owns (DIS)
CNBC.com with wires
