How should you be positioned now?
I believe the market has found it’s bottom and I’m bullish, says Joe Terranova. I feel like I’m not long enough. I think we see money mangers start to chase performance and extend the rally.
I wouldn’t get long anything, counters Guy Adami. I’m watching 1110 in the S&P as the next important technical level. I think that’s where the market hits resistance. If you’re looking to get long, get long the Vix .
I’m mostly bullish, adds Tim Seymour but I’d focus on parts of the world that are growing such as the US and China. On the other hand, I’d be very cautious of stocks very tethered to Europe such as Santander which has big exposure to Spain’s real estate market.
I don’t like trying to be one step ahead of the market, says Karen Finerman. I’m not a fan of trading the big swings in the market. I do what I always do - look for values.
I also like picking up attractive names with good valuations, adds Patty Edwards. But I’m also long volatility, she admits. I’m cautious.
Gains in the market right now are probably being driven by window dressing, says strategic investors Dennis Gartman. The Dow could still climb by 100 points but long term its hard to feel bullish with both the Dow and the S&P breaking below their 200-day moving averages.
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COMMODITY STRENGTH
Commodities ended Thursday on a high note with crude experiencing its biggest 1 day percent gain since September of 2009.
What’s the trade?
Rio Tinto and Mittal are both on my radar, says Tim Seymour.
Walter Energy is also worth a look, adds Guy Adami.
I like Peabody for exposure to coal, counsels Joe Terranova. Or you can also play the Coal ETF .
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TOPPING THE TAPE: CITI
Citigroup led the financials higher after Bill Ackman announced last night that he had purchased nearly 150-million shares of Citi in the last few weeks.
And he’s not the only Wall Street whale that’s bullish Citi. Take a look:
Whales Bullish on Citi
Current Holdings:
Pershing Square: 150Mln
Paulson & Co.: 506Mln
Fairholme Funds: 227Mln
David Tepper: "Significant Position"
Source: CNBC.com
What’s the trade?
I'm playing the space with long positions in Bank of America and JPMorgan, says Karen Finerman.
I think BAC looks interesting, adds Guy Adami.
American Express is worth a look too, adds Joe Terranova.
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TOPPING THE TAPE: CONSUMER
Consumer shares experienced a strong pop Thursday as opposite ends of the retail spectrum reported better than expected results.
Jewelry giant Tiffany's said net income more than doubled while wholesale name Costco saw its sales rise over 12%
What’s the trade?
The Tiffany numbers suggest to me that the high-end shopper is still strong, says Karen Finerman.
But keep in mind the aspirational consumer isn’t doing as well as the high end consumer, adds Patty Edwards.
