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Market Pro: 5 Trades That Look Crowded

Did the desperate quest for alpha send too many investors chasing a handful of stocks?

Michael Block of Phoenix sure thinks so.

He tells the desk that with stocks in the S&P more correlated now than at any other time since 1987, any trade that outperforms the pack is a trade that gets crowded quickly.

In fact, he thinks that hedge funds are continually overcrowding trades.

Names that Block says currently appear to be crowded follow:
Akamai
Mosaic
Cisco
Bank of America
Archer Daniels Midland

*Hear why Block thinks these stocks could soon fall out of favor. Watch the video now!




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Trader disclosure: On August 27th, 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 (AXP), (GS), (IBM), (QCOM), (AAPL), (GOOG), (BRCM), (TER), (MSFT), (C), (MRVL), (BMO), (V), (POT), (OXY), (GLD), (SU), (FCX), (APA), (XBI); Jon Najarian owns (BAC), short calls; Jon Najarian owns (LNC), short calls; Jon Najarian owns (SNDK), short calls; Jon Najarian owns (STX), call spreads; Jon Najarian owns (X), short calls; Karabell owns (AAPL); (CSCO), (FCX), (GS), (POT), (RIMM); Boockvar owns (GLD), (SLV), (XOM), (NEM), (MOS)

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (DRYS)
Virtus Investment Partners own more than 1% of (EXR)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (XLK)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)

For Zach Karabell
River Twice own (CSCO)
River Twice own (GS)
River Twice own (POT)

For Mike Khouw
Cantor Fitzgerald makes a market in (AAPL)
Cantor Fitzgerald makes a market in (ADM)
Cantor Fitzgerald makes a market in (AKAM)
Cantor Fitzgerald makes a market in (AMZN)
Cantor Fitzgerald makes a market in (BAC)
Cantor Fitzgerald makes a market in (BKC)
Cantor Fitzgerald makes a market in (CHK)
Cantor Fitzgerald makes a market in (CML)
Cantor Fitzgerald makes a market in (CSCO)
Cantor Fitzgerald makes a market in (CVLT)
Cantor Fitzgerald makes a market in (DELL)
Cantor Fitzgerald makes a market in (FCX)
Cantor Fitzgerald makes a market in (GS)
Cantor Fitzgerald makes a market in (INTC)
Cantor Fitzgerald makes a market in (ISLN)
Cantor Fitzgerald makes a market in (JOYG)
Cantor Fitzgerald makes a market in (KBH)
Cantor Fitzgerald makes a market in (LEN)
Cantor Fitzgerald makes a market in (LNC)
Cantor Fitzgerald makes a market in (MSFT)
Cantor Fitzgerald makes a market in (NEM)
Cantor Fitzgerald makes a market in (NZ)
Cantor Fitzgerald makes a market in (PAR)
Cantor Fitzgerald makes a market in (POT)
Cantor Fitzgerald makes a market in (RIMM)|
Cantor Fitzgerald makes a market in (SCHW)
Cantor Fitzgerald makes a market in (SLV)
Cantor Fitzgerald makes a market in (SNDK)
Cantor Fitzgerald makes a market in (STX)

For Colin Gillis
***No Disclosures***

For Michael Block
***No Disclosures***

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