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Strength In China To Off-Set Weakness In Europe?

Oil and metals pared gains on Tuesday as investors rethought their commodity trades after new information out of China suggested the yuan’s appreciation would be far slower than previously anticipated.

Which way is the big money betting the yuan will go?

"My sources from the inside track in Beijing are telling me that China will allow the yuan to appreciate by 2-5% over the next 12 months," says top hedge fund manager Anthony Scaramucci of Skybridge. And he goes on to say it's highly likely over the next 3 years it could go up 6-15%.

What does that mean for stocks?

"That makes me bullish basic materials such as copper , coal and companies like Alcoa ." (If the yuan gets stronger the cost of U.S. dollar-denominated commodities that China imports—such as oil, iron ore, copper, coal and platinum—become cheaper for people and businesses based in China.)

"In addition, I’m bullish Intel," says Scaramuuci. "17% of their revenue comes from China, which has the second largest PC market in the world. Demand from China should drive this stock."

In fact, Scaramuuci thinks demand from China could drive the entire market.

After doing extensive research and talking with his sources Scarmucci says, "The Chinese doemstic consumer demand will be such that it will pull the world out of recession."



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Bet On Investment Banking Comeback?

In the wake of results from Jefferies, investors are questioning what will drive financials going forward?

Perhaps it’s not trading – perhaps it’s investment banking.

That’s the chatter on Wall Street after Jefferies profits topped analyst estimates largely due to a surge in investment banking.

Specifically, investment banking revenue jumped to $256 million from $121 million.

Ahead of results from bigger banks including Goldman Sachs and Morgan Stanley how should you position?

What’s the trade?

I think it’s hard to extrapolate too much from Jefferies earnings, says Sandler O’Neail analyst Jeff Harte. However I do think Jefferies is well positioned for a brave new world going forward.

Find out what Harte tells us about Citi, Lazard and more. Watch the video now!


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Trader disclosure: On June 22, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Terranova owns (IPSU), (BX), (AGU), (PFE), (TER), (GMCR), (RSX), (TER), (AXP), (KO), (KR), (COST), (AMZN), (TEVA), (BMO), (DIS), (XCO), (SWN), (GMCR), (IPI), (SU), (XOM), (RDS.A), (COP), (OXY), (V), (FXB); Terranova owns (GLD) July 120 puts; Kelly is short (GS); Kelly owns (BP) puts; Kelly owns (FCX) puts; Kelly owns (GLD); Kelly owns (GDXJ); Jon Najarian owns (MOS) and short calls; Jon Najarian owns (SCCO) and short calls; Jon Najarian owns (JEF) and short calls; Jon Najarian owns (AAPL) call spreads; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Pete Najarian owns (PFE); Pete Najarian owns (CELG); Pete Najarian owns (SD)

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 (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 (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 Brian Kelly
Accounts managed by Kanundrum Capital are short (GS)
Accounts managed by Kanundrum Capital own (BP) puts
Accounts managed by Kanundrum Capital own (FCX) puts
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)

For Dennis Gartman
Funds Managed By Dennis Gartman Are Short Yen
Funds Managed By Dennis Gartman Are Long Canadian Dollar, Australian Dollar

For Robert Mackenzie
FBR Capital Markets makes a market in (BRNC), (RIG), (SLB), (KEG), (TESO), (ESEA), (SBLK)

For Jeff Harte
Sandler O'Neill Served As Financial Advisor To Investor Group That Agreed To Buy First Republic Bank From (BAC)
Sandler O'Neill Recvd. Inv. Bank. Comp. From (C), (JPM), (BAC) In Past 12 Mos.
(JPM), (BAC) Was An Investment Banking Client Of Sandler O'Neill In Past 12 Months
Sandler O'Neill Expects To Receive or Seek Inv. Bank. Comp. From (BAC), (BK), (JPM), (C), (NTRS) In Next 3 Mos.
(BAC), (C), (JPM), (MS), (BK), (NTRS) Are Clients Of Sandler O'Neill
Sandler O'Neill Has Received Non-Inv. Bank. Comp. From (C), (JPM), (BAC)
(GS) Is A Non-Inv. Bank. Client Of Sandler O'Neill
Sandler O'Neill Is A Market Maker In (NTRS)

For Mark Mahaney
Citi Research Employees Own (GOOG), (YHOO) Citigroup Global Markets Or Affiliates Owns 1% Or More Of (AKAM), (YHOO), (NFLX)
Citigroup Global Markets Or Affiliate Received Non Inv. Bank. Comp. From (GOOG), (AMZN), (EBAY), (YHOO)
In Past 12 Months (GOOG), (AMZN), (EBAY), (YHOO) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Securities-Related Services)
Citigroup Global Markets Is A Market Maker In (AKAM), (GOOG), (AMZN), (EBAY), (YHOO), (NFLX), OpenTable
Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (GOOG), (AMZN), (EBAY)
Citigroup Global Markets Or Affiliates Owns 5% Or More Of (YHOO)

Carter Worth
***No Disclosures***

Brian Stutland
***No Disclosures***

CNBC.com with wires

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