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Euro Update: Which US Stocks Most Vulnerable If Europe Worsens?

With the euro cracking, Greece rioting, and the Dow tumbling, what’s an investor to do?

Stocks plunged on Thursday after a general strike in Greece triggered new worries about that nation’s debt crisis -- and how the ripple might impact, banks, multinationals and more.

How should you be positioned now?

I’m adding to my short in Europe, says veteran trader Gary Kaminsky. I think trouble in Greece spreads across Europe. And I’m playing it with a long position in EPV .

And if you want a play here at home, I’m concerned about American multinationals. Some of them have huge exposure to Greece and Europe, adds Kamninksy. Take a look.

S&P Companies With Largest % of European Sales
Exxon Mobil 38%
General Electric 24%
Ford 21%
Johnson & Johnson 26%
Dow Chemical 13%
Source: Howard Silverblatt, S&P

I honestly believe that come April that these companies take down guidance, he says.

If you want to play Europe short, I agree a great way to do it is with the EPV, adds OptionMonster Jon Najarian. And I agree that we’re connected; in other words if Europe is going down then the American markets will go down too. I expect to see more selling pressure than optimistic buyers here in the US.

I agree that Europe gets worse, echoes Fast Money trader Guy Adami. I think the EPV goes to $27.56. And I also find it very hard to get bullish on US equities in this environment.

Cool down, counters Steve Cortes of Veracruz. I don’t think things are as bad as the market action suggests. European banks are trading relatively well. With Spain the next market in play, I’m watching the action in Banco Santander , he adds. I think the action in the banks tells us that things are not as bad as the sell-off in the euro would otherwise suggest.

Also, the euro yen cross used to be inter-changeable with the S&P but now they’ve diverged. I also find that bullish, says Cortes.

I think all the rhetoric about Europe is way overdone, adds Tim Seymour. If there’s so much trouble overseas how can the Vix be going down, he adds. I’m look for buying opportunities on the dip. Check out Telefonica .


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Trader disclosure: On February 25, 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 (GS), (AGU), (C), (INTC), (MSFT), (NUE), (BTU); Kaminsky Owns (EPV); Cortes Is Long Canadian Dollar And Short Treasuries Through Put Options Spread; Najarian Owns (BRCD) Calls; Najarian Owns (KO) Call Spread; Najarian Owns (MYL), (MYL) Puts; Najarian Owns (NTAP) Calls; Levy Is Short (AAPL) Call Spread; Jon Najarian Owns (AAPL), Is Short (AAPL) Calls; Jon Najarian Owns (BAC), Is Short (BAC) Calls; Jon Najarian Owns (C), Is Short (C) Calls; Jon Najarian Owns (GS), Is Short (GS) Calls; Jon Najarian Owns (JPM), Is Short (JPM) Calls; Jon Najarian Owns (PALM), Is Short (PALM) Calls; Jon Najarian Owns (RIMM), Is Short (RIMM) Calls; Jon Najarian Owns (TJX), Is Short (TJX) Calls; Jon Najarian Owns (WFC), Is Short (WFC) Calls; Jon Najarian Owns (WMT), Is Short (WMT) Calls; Jon Najarian Is Long (AMSC) Through Options; Jon Najarian Is Long (SII) Through Options; Jon Najarian Is Long (MIL) Through Options; Jon Najarian Is Long (CROX) Through Options; Jon Najarian Is Long (CMC) Through Options; Jon Najarian Is Short (DLTR) Through Options; Jon Najarian Is Short (NFLX) Through Options

For Dennis Gartman
Funds Managed By Gartman Are Long Gold
Funds Managed By Gartman Are Short Euros, British Pound Sterling, Yen
Funds Managed By Gartman Own (GLD)

For Brad Hintz

Hintz Owns Morgan Stanley And Discover
Hintz Owns (CME)
Accounts Over Which Bernstein And/Or Affiliates Exercise Investment Discretion Own More Than 1% Of Barclays PLC, Credit Suisse Group, (C), (GS), (JPM), (MS), (BAC)
Barclays PLC, (C), Credit Suisse Group, (GS), (JPM), (MS), (BAC) UBS AG Are Or In Past 12 Months Were Clients Of Bernstein (Non-Investment Banking-Securities Related Services), Bernstein Received Compensation
An Affiliate Of Bernstein Received Compensation From Barclays PLC, (C), Credit Suisse Group, (JPM), (GS), (MS), UBS AG (Non-Investment Banking-Securities-Related Services)
Bernstein Or Affiliate Received Investment Banking Compensation From (C) In Past 12 Months
Bernstein Or Affiliate Expects To Receive/Seek Investment Banking Compensation From Barclays PLC, (C), Credit Suisse Group, (GS), (JPM), (MS), (BAC) UBS AG In Next 3 Months

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Funds Managed By Whitney Tilson Own (BRK.A), (BRK.B)
Funds Managed By Whitney Tilson Own (IRDM)
Tilson Owns (BRK.A), (BRK.B)
Tilson Owns (IRDM)

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