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Halftime Report: After Health Care, Is Wall Street Reform Next?

In the wake of health care reform, the traders are watching the action in bank stocks .

Considering health care reform went through, can the Wall Street crackdown be far behind?

Instant Insights with the Fast Money traders

I went shortGoldman Sachs for this very reason, says Joe Terranova on Friday’s Fast Money. In the wake of sweeping new health care legislation I think Congress feels empowered to also pass bank reform.

I’d be a buyer of Goldman, counters Steve Cortes of Veracruz. I think the company has struggled with a slew of negative headlines and I expect it will emerge from this fog of negativity on the upside.

In the options pits, I’m seeing a lack of activity in the financials, adds JJ Kinahan. That’s probably a bad sign.

If you're trading bank stocks, it’s worth noting that according to a Wall Street Journal report, U.S. pay czar Ken Feinberg plans to review executive compensation at Goldman Sachs , J.P. Morgan and hundred of other firms that took TARP money, explains host Melissa Lee.

It doesn’t seem like a coincidence that Washington is now looking to take on banks in an election year, muses Zach Karabell of River Twice.

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SWEEPING HEALTH CARE OVERHAUL

Stocks dipped then traded higher in the wake of health care overhaul as investors sold the news first then asked questions later.

What are your best plays following this historic legislation?

I’m a buyer of the IBB for two reasons, adds Steve Cortes: as a momentum and as a play on the aging population, says Steve Cortes.

According to Citi, hospital stocks could see 30% appreciation long term, reminds host Melissa Lee.

I don’t love the health care space on a relative basis, counters Zach Karabell. There are still a lot of uncertainties about how it all plays out. Instead I prefer tech or industrials .

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COMMODITIES CRUSHED

The euro slipped to a three-week low against the dollar on Monday, pressured by uncertainty about whether Greece would be able to secure aid this week to help service its ballooning debts.

The stronger dollar hit commodities hard with gold and copper both falling; oil slipped almost 2 percent toward $79 a barrel on Monday, declining for a third straight session.

"It's the general mood in commodity markets today, with not only oil under pressure, said Carsten Fritsch, analyst at Commerzbank. "The main driver is the rapid strengthening in the U.S. dollar, which puts immense pressure on commodities across the board,” he explains.

What’s the trade?

Patterns in the charts of oil suggest to Oppenheimer’s Carter Worth that oil won’t stay in its range much longer. He says ultimately we expect “up and out.”

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WATCHING GOOGLE

The traders are keeping a close eye on Google after published reports suggested that as soon as Monday the tech titan may reveal plans to shutter its China website.

What must you know?

I think the recent decline in Google’s share price was the market pricing in the company’s decision to pull out of China, says Citi analyst Mark Mahaney. At these levels China is priced in. If you’re looking for a trade I’m a buyer of Akamai at $25.

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TOPPING THE TAPE: BOEING

Shares of Boeing popped on Monday after Oppenheimer upgraded the aviation giant to outperform from underperform and increased the company’s price target to $80 citing accelerated production of its 747 and 777 airplanes.

What’s the trade?

I’d look downstream and play the defense names broadly, says Steve Cortes.

Be careful, counters Zach Karabell. It seems to me defense Secretary Robert Gates is determined to cut large systems. I’d play the space very carefully.

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EAR TO THE WALL: PTV

JJ Kinahan has spotted unusual options activity in Pactiv Corp, the maker of Hefty Bags.

The volume of April 25 calls and May 30 calls leads Kinahan to speculate that the stock could make a sharp move higher.

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CALL THE CLOSE

Steve Cortes I like high end retail.
Zach Karabell I think the market has some hefty upside
JJ Kinahan I think the slow grind continues higher.
Carter Worth: I think we end unchanged.


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Trader disclosure: On March 22nd, 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); Najarian Owns (AA) Calls; Najarian Owns (BAC) Call Spread; Najarian Owns (C) Calls; Najarian Owns (CLX) Calls; Najarian Owns (MCD) Call Spread; Najarian Owns (MLM) Calls; Najarian Owns (MYL); Najarian Owns (PFE); Najarian Owns (TEVA); Najarian Owns (YHOO) Calls; Najarian Owns (OSIP) Calls; Najarian Owns (DD) Calls; Najarian Owns (BBY) Call Spread; Najarian Owns (AKAM) Call Spread; Terranova Owns (QCOM), (OIH), (POT); Terranova Owns (GS) April Puts; Terranova Is Short (UAUA); Terranova Is Short (CAL); Terranova Is Long May Crude Oil Futures; Terranova Is Short (GS); Karabell Owns (C), (JPM); Cortes Owns (IBB), Is Short S&P Futures; Kinahan Owns (C), Is Short (C) Puts; Kinahan Is Short (SPY) Through Options; Karabell Owns (GOOG); Kinahan Owns (WFC), Is Short (WFC) 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 (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 Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (AAPL)
Cantor Fitzgerald & Co. Is A Market Maker In (AMX)
Cantor Fitzgerald & Co. Is A Market Maker In (AA)
Cantor Fitzgerald & Co. Is A Market Maker In (BA)
Cantor Fitzgerald & Co. Is A Market Maker In (BAC)
Cantor Fitzgerald & Co. Is A Market Maker In (BIDU)
Cantor Fitzgerald & Co. Is A Market Maker In (C)
Cantor Fitzgerald & Co. Is A Market Maker In (CLX)
Cantor Fitzgerald & Co. Is A Market Maker In (CVS)
Cantor Fitzgerald & Co. Is A Market Maker In (FNGN)
Cantor Fitzgerald & Co. Is A Market Maker In (FNM)
Cantor Fitzgerald & Co. Is A Market Maker In (FRE)
Cantor Fitzgerald & Co. Is A Market Maker In (GLW)
Cantor Fitzgerald & Co. Is A Market Maker In (GOOG)
Cantor Fitzgerald & Co. Is A Market Maker In (GS)
Cantor Fitzgerald & Co. Is A Market Maker In (JPM)
Cantor Fitzgerald & Co. Is A Market Maker In (LGF)
Cantor Fitzgerald & Co. Is A Market Maker In (LVS)
Cantor Fitzgerald & Co. Is A Market Maker In (MCD)
Cantor Fitzgerald & Co. Is A Market Maker In (MS)
Cantor Fitzgerald & Co. Is A Market Maker In (MSFT)
Cantor Fitzgerald & Co. Is A Market Maker In (ORCL)
Cantor Fitzgerald & Co. Is A Market Maker In (PALM)
Cantor Fitzgerald & Co. Is A Market Maker In (PG)
Cantor Fitzgerald & Co. Is A Market Maker In (QQQQ)
Cantor Fitzgerald & Co. Is A Market Maker In (RIMM)
Cantor Fitzgerald & Co. Is A Market Maker In (SPY)
Cantor Fitzgerald & Co. Is A Market Maker In (TEVA)
Cantor Fitzgerald & Co. Is A Market Maker In (TTWO)
Cantor Fitzgerald & Co. Is A Market Maker In (WFC)
Cantor Fitzgerald & Co. Is A Market Maker In (XLF)
Cantor Fitzgerald & Co. Is A Market Maker In (YHOO)


For Brian Kelly
Kanundrum Capital Owns (FNM)
Kanundrum Capital Owns (FRE)
Kanundrum Capital Owns (S)
Kanundrum Capital Owns (SEE)
Kanundrum Capital Owns (SYY)
Kanundrum Capital Owns (IBM)
Kanundrum Capital Owns (PTV)
Kanundrum Capital Owns (DE)
Kanundrum Capital Owns (TXN)
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short (AA)
Kanundrum Capital Is Short (ACH)
Kanundrum Capital Is Short (GS)
Kanundrum Capital Is Short (FCX)
Kanundrum Capital Is Short Copper
Kanundrum Capital Is Short Treasuries
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Yen
Kanundrum Capital Is Short Pound

For Dennis Gartman
Funds Managed By Dennis Gartman Are Long Gold
Funds Managed By Dennis Gartman Are Long Canadian Dollars
Funds Managed By Dennis Gartman Are Long Australian Dollar
Funds Managed By Dennis Gartman Are Short Euro
Funds Managed By Dennis Gartman Are Short British Pound

For Mark Mahaney
Citi Employees Own (GOOG), A Citi Employee Owns (YHOO)
Citigroup Global Markets Or Affiliates Owns 1% Or More Of (AKAM), (YHOO)
Citigroup Global Markets Or Affiliate Received Non-Investment Banking Compensation From (GOOG), (YHOO), (AMZN), (EBAY) In Past 12 Months
(GOOG), (YHOO), (AMZN), (EBAY) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Securities-Related Services)
(GOOG), (YHOO), (AMZN), (EBAY) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Non-Securites-Related Services)
Citigroup Global Markets Is A Market Maker In (GOOG), (AKAM), (YHOO), (AMZN), (EBAY)
Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (GOOG), (YHOO), (EBAY)
Citigroup Global Markets Owns 5% or More Of (YHOO)
Citi Employees Own (MSFT)
Citigroup Global Markets Or Affiliates Has Managed Or Co-Managed An Offering Of (MSFT) In Past 12 Months
Citigroup Global Markets Or Affilaites Has Received Investment Banking Compensation For Services Provided In Past 12 Months From (MSFT)
Citigroup Global Markets Or Affiliate Received Non-Investment Banking Compensation From (MSFT) IN Past 12 Months
Citigroup Global Markets Has Or In Past 12 Months Had (MSFT) As An Investment Banking Client
(MSFT) Is Or In Past 12 Months Was A Client Of Citigroup Global Markets (Non-Investment Banking, Securities-Related Services)
(MSFT) Is Or In Past 12 Months Was A Client Of Citigroup Global Markets (Non-Investment Banking, Non-Securities-Related Services)
Citigroup Global Markets Is A Market Maker In (MSFT)



CNBC.com with wires

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