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Europe Eagerly Awaits German Bailout Vote

Thursday, 20 May 2010 | 6:14 PM ET
Europe on the Brink
Why the German bailout vote put Europe on the brink, with Peter Boockvar, Miller Tabak.

All eyes are on Germany, with investors wondering if German parliament will approve the nation's 150 billion EUR contribution to the euro-zone support plan, but Germany did tighten financial regulation earlier this week.


On Tuesday, a finance ministry spokesman announced a ban on naked short-selling and credit default swaps, as a way of countering volatility in euro-zone bond markets. The ban went into effect at midnight Wednesday and will remain in place through March 31st.

An equity strategist at Miller Tabak, Peter Boockvar expects expects the bailout to pass, but doesn't believe it will work and told the Fast Money traders "intervention is a waste." He said countries like Spain and Portugal will contract over the next few years and "they will not be able to grow out of it."

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EUROPE'S WOES HIT AMERICA'S WALLET

Speaking of Europe, if the euro continues its decline against the dollar, which US companies would suffer the most? Patty Edwards of Storehouse put together this list:

Company % Revenue Coming From Europe
SunPower 60%
McDonalds 40%
Activision 40%
Electronic Arts 40%
Itron 40%
Adobe 32%

Look into how much of this is factored into their guidance and then place your bets accordingly, Edwards said.

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FEELING A TAD CONTRARY

Fade The Panic?
Steve Cortes of Veracuz explains why this may be the time for a contrarian play - long crude and long Goldman.

If all the negative headlines out of Europe have you thinking about making a contrarian bet, Steve Cortes of Veracruz suggests longcrude and long Goldman Sachs for a bounce, but only with tight stops.


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Trader disclosure: On May 19 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Jon Najarian owns (GS) puts; Jon Najarian owns (JPM) puts; Jon Najarian owns (XLF); Jon Najarian owns (SPY); Jon Najarian owns (NYX) and (CME); Jon Najarian owns (NYX) and (CME) puts; Jon Najarian owns seats on NYSE, CME & CBOE; Grasso Owns (BP), (NDAQ), (DYN), (LPX), (ASTM), (ABK), (BAC), (BGP), (C), (CVGI), (JPM), (PRST), (PFE), (BA), (T), (CSCO), (X); Najarian Owns (AMD) Calls; Najarian Owns (C) Calls; Najarian Owns (CAT) Call Spread; Najarian Owns (DELL) June Calls, Is Short (DELL) May Calls; Najarian Owns (HPQ), Is Short (HPQ) Calls; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (MCD) Call Spread; Najarian Owns (NOVL) Calls; Finerman's Firm Is Short (IJR), (MDY), (IWM), (SPY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC), (BAC) Preferred; Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (JPM), (JPM) Calls; Finerman Owns (JPM); Finerman's Firm Owns (TJX); Finerman Owns (WFC) Preferred; Finerman's Firm Owns (YUM); Terranova Owns (PFE), (GLD); Cortes Is Long Euro; Cortes Is Long Crude Oil; Edwards owns (VXX)

For JoeTerranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
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 (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Dan Niles
Alpha One Capital Partners Owns (AAPL)
Alpha One Capital Partners Owns (BIDU)
Alpha One Capital Partners Owns (EBAY)
Alpha One Capital Partners Owns (GS)
Alpha One Capital Partners Owns (CREE)
Niles Invests In Alpha One Capital Partners

For Brian Stutland:
Stutland Equities Is A Market Maker In VIX
Stutland Equities Is A Market Maker In (SPY)
Stutland Holds A Seat On CBOE

For Peter Boockvar
Boockvar Owns Euros

For Patty Edwards
Edwards owns (VSS) for clients
Edwards owns (SPY) for clients
Edwards owns (QQQ) for clients
Edwards owns (MSFT) for clients
Edwards owns (GOOG) for clients
Edwards owns (CSCO) for clients
Edwards owns (ORCL) for clients
Edwards owns (CPB) for clients
Edwards owns (KO) for clients
Edwards owns (AAPL) for clients
Edwards owns (HPQ) for clients
Edwards owns (AAPL) for clients
Edwards owns Gold for clients
Edwards owns Platinum for clients

For Steve Grasso
Stuart Frankel And Its Partners Own (APC)
Stuart Frankel And Its Partners Own (AMR)
Stuart Frankel And Its Partners Own (BAX)
Stuart Frankel And Its Partners Own (CUBA)
Stuart Frankel And Its Partners Own (DNR)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (GERN)
Stuart Frankel And Its Partners Own (HSPO)
Stuart Frankel And Its Partners Own (MERC)
Stuart Frankel And Its Partners Own (NWS.A)
Stuart Frankel And Its Partners Own (NYX)
Stuart Frankel And Its Partners Own (PDE)
Stuart Frankel And Its Partners Own (PFE)
Stuart Frankel And Its Partners Own (PRST)
Stuart Frankel And Its Partners Own (RDC)
Stuart Frankel And Its Partners Own (TLM)
Stuart Frankel And Its Partners Own (TRV)
Stuart Frankel And Its Partners Own (XRX)
Stuart Frankel And Its Partners Own (SDS)
Stuart Frankel And Its Partners Are Short (QQQQ)
Stuart Frankel And Its Partners Are Short (CL)
Stuart Frankel And Its Partners Are Short (AAPL)

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  Price   Change %Change
ADBE
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ATVI
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GS
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ITRI
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MCD
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