Strategy Session with the Fast Money traders
I think the strength in retail sales comes from an early Easter, says Tim Seymour. What you got in March needs to be subtracted from April. A lot of the consumer names have run and run. I’d get out of names that have come far and fast. I'm talking names such as TJX, Gap, Saks and other retail names that have sky-rocketed higher.
In this space, I think it’s important to pick and choose, says Patty Edwards. The performance this March is relative. Last March was terrible. I would not play retailers broadly. Here’s what I like.
Edward's Top Retail Picks
*JCrew
*Gap
*The Buckle
*Nordstrom
Patty Edwards has written an exclusive post for Fast Money’s website providing in-depth coverage of this trend. Click here to go to her post.
On a somewhat related note - if you're looking for some diverse trading ideas Joe Terranova has some wide ranging thoughts.
In tech look at Yahoo!, in ag look at Potash and in nat gas look EOG, Apache or Southwestern Energy, says Joe Terranova. All these stocks look under-owned, he says.
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KEY FINANCIALS CONTINUE TO OUTPERFORM
For the second day in a row both Goldman and Morgan Stanley traded higher outperforming peers.
Why the interest in these two names?
It seems to me investors are looking for names that have underperformed and both GS and MS have underperformed lately, explains Jon Najarian.
Morgan reports April 20th and I’m hearing investors are expecting a surprise to the upside, adds Steve Grasso. I’m a buyer of Morgan as well as Goldman and JPMorgan.
If you believe the consumer is recovering I’d look at American Express, says Joe Terranova.
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A FEW GOOD… TRADES
- CASINOS
The entire casino sector rallied on Thursday with MGM in the lead.
What should you make of the moves?
On Thursday the Nevada Gaming Board released data that showed gaming revenue increased 13.9%, explains Jon Najarian. I still like the space, but I liked it more earlier in the year.
In the space I like MPEL, counsels Tim Seymour.
I’m bullish on IGT, says Joe Terranova.
- AMAZON
Amazon shares rallied on Thursday largely due to chatter that the mighty Kindle could be heading to Target stores.
What’s the trade?
Forget the Kindle. Amazon makes a heck of a lot more money selling books then selling the selling Kindle, explains Jon Najarian. I think shares are rallying on the Amazon ap for Apple's iPad.
- AIRLINES
We'd be remiss if we didn't talk about the airlines which are also trading to the upside on Thursday, largely due to published reports which suggest United and US Airways may be looking at a merger.
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EAR TO THE WALL: APPLE
According to market speculation Apple has another trick up its sleeve. The rumor mill suggests a mini-iPad may be on the horizon.
What’s the tech trade?
I’m bullish Apple long-term, says Steve Grasso.
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PAIRS TRADES
Steve Cortes of Veracruz has not one - but two great single stock stories. And they involve the cathedrals of capitalism.
Cortes likes a pair of pairs trades.
Buy the brokers and go short the market, counsels El Capitan. With Goldman and Morgan breaking out this week he likes a long position in either or both.
Or if you want to play it another way, Cortes also suggests long The DJ US Broker-Dealers ETF and short the SPY.
I also think the brokers look great but financial regulation lies on the horizon, counsels Tim Seymour. If you get into this trade – know that this is the fly in the ointment.
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BEST SELLING OPPORTUNITY IN 10 YEARS?
