That's what I did on Tuesday; I took profits in names that had a good run such as McDonald's , says Karen Finerman.
I don’t agree that the market goes sharply lower, counters Tim Seymour. There's not a lot of data that should drag us down and key stocks are trading well. I'd position on the thesis that the market drifts higher into mid-September.
It seems to me that the big issue right now is the euro-banking problem and the flight to quality it triggers, says Anthony Scaramucci. Until we get a little rise in interest rates I don’t think the market acts much better.
MARKET BUZZKILL: RESOURCE/INDUSTRIAL STOCKS
Resource and industrial stocks led the way lower on Tuesday due to fears that last week’s euphoria may have been overblown.
How should you play the dip?
Copper continues to trade well, muses Tim Seymour. I think there’s real industrial demand and not a lot of supply. I’d play the space long copper.
Hong Kong rallied sharply on Monday, says Steve Cortes and that suggests to me Asia’s market is strong enough to feel bullish about resources. I’m a buyer of Freeport and BHP on pullbacks.
I also like FCX, says Joe Terranova. And I’d also suggest long US Steel if it breaks above $51, it’s 200-day.
MARKET BUZZKILL: FINANCIALS
As we mentioned above, investors slammed banks across the world due to renewed fears that Europe’s bank crisis might not be contained after all.
What’s the trade?
Banks are trading as if they need to have another capital raise, says Guy Adami. I think the space is a little dicey but if you want to be in the space I’d look at longBofA and US Bancorp .
STREET FIGHT: H-P STRIKES BACK AT HURD
Hewlett-Packard sued former Chief Executive Mark Hurd and asked a court to block him from joining Oracle saying his hiring by the rival technology firm puts HP's trade secrets "in peril."
Oracle, the world's third-largest software maker, named Hurd co-president and director on Monday, a month after he resigned from HP over expense account irregularities related to a female contractor.
In a civil complaint filed in Superior Court in Santa Clara County on Tuesday, HP said: "In his new positions, Hurd will be in a situation in which he cannot perform his duties for Oracle without necessarily using and disclosing HP's trade secrets and confidential information to others."