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Halftime Report: Is No News Good News?

Tuesday, 16 Mar 2010 | 1:15 PM ET

Edgy investors spent Tuesday afternoon waiting anxiously for a statement from the Fed that's expected to remain unchanged.

Will the status quo drive stocks higher?

Strategy Session with the Fast Money Trader

With the S&P trading north of 1155 I think an unchanged Fed statement will look good to the market, explains Steve Grasso of Stuart Frankel. I don’t want to say nothing but blue skies ahead but I think it remains a bullish market. I expect momentum to take us to 1185.

On average the market trades higher ahead of the Fed meeting and then trades lower after the meeting – that’s true 59% of the time, explains Oppenheimer’s Carter Worth. But with that said, the action in this market is anything but average. I expect stocks to close around 1160 on Tuesday and I think there’s a little more upside above that.

I’m a buyer of this market below 1150 and I’m a seller above 1160, adds Brian Stutland of Stutland Equities.

Fast Money Halftime Report
How to invest now, with the Fast Money crew.

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TOPPING THE TAPE: INDUSTRIALS

The Fast Money traders are noticing opportunity in industrials after GE said it expects its earnings and dividend to rise in 2011. Industrials have been among the best performing sectors in 2010.

What’s the trade?

I like GE a lot right here, says Brian Stutland.

I’m bullish on the ‘big ugly names’ that pay dividends and haven’t been moving, adds Patty Edwards of Storehouse. Take a look at CBI .


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U.S VS CHINA

Are we heading for a trade and currency war with China? That’s the chatter on Wall Street with a new bill in the Senate threatening to impose huge tariffs on goods imported from China unless Beijing revalues the Yuan.

What’s the trade?

A similar strategy surfaced in the 1930’s and it did not work, says Patty Edwards. I can’t believe the bill was even drafted!

I’m still bullish commodities and I’d play it with a long position in Cliffs, Walter Industries and/or Arch Coal , says Steve Grasso.

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OIL TRADES ABOVE $80

Oil rose more than 2 percent to near $82 a barrel on Tuesday largely buoyed by a weaker dollar .

What’s the trade?

I’m a buyer of the USO , says Joe Terranova, because the front of the board is strengthening relative to the back of the board. And as a second derivative trade I’d be a seller of the airlines. Oil above $80 is not good for the airlines.

With oil at $80, I’d rotate into the entire energy complex and out ofconsumer discretionary , counsels Carter Worth.

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GOLD RALLIES

In commodities, the Fast Money gang is also keeping an eye on gold which rose sharply on Tuesday.

What’s the trade?

I’m long the GLD, reveals Patty Edwards.

I’d want gold to break out above $1150 before I can feel bullish, counters Brian Stutland.

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EAR TO WALL HOG

Shares of Harley-Davidson popped on Tuesday amid speculation the motorcycle maker was the target of a takeover with private equity firm KKR among the rumored buyers.

What’s the trade?

Harley Davidson is a solid business. I can see private equity wanting to own it, muses Patty Edwards, but it’s not a stock I’d want to own as an investor.

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CALL THE CLOSE

Brian Stutland: I’m a buyer below 1150 and I’m a seller above 1160.

Patty Edwards: I’d pick and choose. I like CBI.

Steve Grasso: I think the market wants to go higher and I expect momentum to take us to 1185.

Carter Worth: I’d expect stocks to close around 1160 and I think there’s a little more upside above that.


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Trader disclosure: On March 16, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Grasso Owns (TSO), (AAPL), (ABK), (ASTM), (BA), (BAC), (BGP), (C), (COST), (CSCO), (PFE), (PRST), (WMT), (FAZ); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (BAC) Call Spread; Najarian Owns (C) Calls; Najarian Owns (F) Calls; Najarian Owns (GE) Calls; Najarian Owns (HOG) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (MCD) Call Spread; Najarian Owns (NSC); Najarian Owns (PCX); Najarian Owns (BP); Seymour Owns (AAPL), (BAC), (F), (GE), (TSO),(XOM); Terranova Is Short (AMR); Terranova Is Short (CAL); Terranova Is Short (GOOG); Terranova Owns (POT); Terranova Owns (TER); Terranova Is Long. Dec. 2010 Crude Oil Futures; Edwards Owns (CBI) For Clients; Edwards Owns (GLD) For Clients; Edwards Owns (GE) For Clients; Edwards Owns (CVX) For Clients; Edwards Owns (QQQQ) For Clients; Edwards Owns (SPY) For Clients; Edwards Owns (XOM) For Clients; Stutland's Firm Is A Market Maker In VIX, Is Short Volatility; Stutland's Firm Is A Market Maker In SPX, Is Short Volatility; Stutland Is Short (GLD); Stutland Owns (CVX), Is Short Options; Stutland Owns (GE) And Is Short (GE) Calls And (GE) Puts

GE Is The Parent Company Of CNBC

For Tim Seymour
Seygem Asset Management Owns (MTL)
Seymour Owns (AA)

For JoeTerranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (GOK)
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 (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLI)

For Steve Grasso
Stuart Frankel & Co. Inc. And Its Partners Are Short (AAPL)
Stuart Frankel & Co. Inc. And Its Partners Own (ABK)
Stuart Frankel & Co. Inc. And Its Partners Own (CUBA)
Stuart Frankel & Co. Inc. And Its Partners Own (GERN)
Stuart Frankel & Co. Inc. And Its Partners Own (GLG)
Stuart Frankel & Co. Inc. And Its Partners Own (HSPO)
Stuart Frankel & Co. Inc. And Its Partners Own (NWS.A)
Stuart Frankel & Co. Inc. And Its Partners Own (NXST)
Stuart Frankel & Co. Inc. And Its Partners Own (NYX)
Stuart Frankel & Co. Inc. And Its Partners Own (PDE)
Stuart Frankel & Co. Inc. And Its Partners Own (PRST)
Stuart Frankel & Co. Inc. And Its Partners Own (RDC)
Stuart Frankel & Co. Inc. And Its Partners Own (TLM)
Stuart Frankel & Co. Inc. And Its Partners Own (TOL)
Stuart Frankel & Co. Inc. And Its Partners Own (XRX)
Stuart Frankel & Co. Inc. And Its Partners Own (SDS)
Stuart Frankel & Co. Inc. And Its Partners Are Short (QQQQ)
Stuart Frankel & Co. Inc. And Its Partners Are Short (CL)

For Brian Kelly
Kanundrum Capital Owns (GE)
Kanundrum Capital Owns (JPM)
Kanundrum Capital Owns (PAG)
Kanundrum Capital Owns (SCHW)
Kanundrum Capital Owns (CVX)
Kanundrum Capital Owns (DE)
Kanundrum Capital Owns (ELX)
Kanundrum Capital Owns (BRCM)
Kanundrum Capital Owns (TXN)
Kanundrum Capital Owns (QCOM)
Kanundrum Capital Owns (POT)
Kanundrum Capital Owns (IPI)
Kanundrum Capital Owns (MOS)
Kanundrum Capital Owns (GLD)
Kanundrum Capital Owns (GDXJ)
Kanundrum Capital Is Short (FCX)
Kanundrum Capital Is Short (FXI)
Kanundrum Capital Is Short (EWH)
Kanundrum Capital Is Short (EWY)
Kanundrum Capital Is Short (SDS)
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short Copper
Kanundrum Capital Is Short Treasuries



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  Price   Change %Change
S&P 500
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ACI
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CBI
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CLF
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GE
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GLD
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HOG
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USO
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WLT
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SPDR CD SEL
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