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Top Traders' Best Plays Ahead of Tuesday's Election

Friday, 29 Oct 2010 | 5:46 PM ET

Traders are on hold before what may be the most important week of 2010, so what action should you take on Monday before the midterm election results are in and the Federal Reserve's statement is out?

Brian Kelly, founder of Kanundrum Capital, recommends buying the iShares Barclays 20+ Year Treasury Bond exchange-traded fund. Kelly noted that Goldman Sachs said the Fed is likely to buy longer-term bonds. He wants to buy what the Fed's buying.

Stuart Frankel's Steve Grasso is focusing on the health care space and in particular, companies that require Medicare and Medicaid funding. Grasso would sell those names, assuming that the Republicans will take control of Congress and seek to reduce or eliminate those funding sources.

Grasso's Health Care Plays
Buy/HoldSell
UnitedHealthcareAmerigroup
WestPointHealthSpring
CignaPfizer
AetnaMerck

Grasso added that financials and energy names will also likely catch a bid if the Republicans gain ground in the Senate and take over the House.

Speaking of energy plays, Kelly likes Tidewater and Cliffs Natural Resources . He thinks they could face less regulatory control should the Republicans gain control.

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Trader disclosure: On Oct. 28, 2010, the day this post was published, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Karen Finerman owns (AAPL). Stephen Weiss owns (AET), (CI), (WLP), (QCOM), (MDRX), (UPS), (TXN), (MRK), (TBT) and (UUP). Steve Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE) and (PRST). Guy Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC) and (MSFT).

For BRIAN KELLY
Accounts managed by Kanundrum Capital own (CLF)
Accounts managed by Kanundrum Capital own (EEM)
Accounts managed by Kanundrum Capital own (GS)
Accounts managed by Kanundrum Capital own (IWM)
Accounts managed by Kanundrum Capital own (JEF)
Accounts managed by Kanundrum Capital own (TDW)
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own Euros
Accounts managed by Kanundrum Capital short Japanese Yen

For STEVE GRASSO
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (MGM)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (OPEN)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)
Stuart Frankel & Co and it’s partners are short (AAPL)
Stuart Frankel & Co and it’s partners are short (MCD)

For GUY ADAMI
Adami’s wife works at Merck

For KAREN FINERMAN
Finerman’s Firm owns (BP)
Finerman & Finerman’s Firm owns (CVS)
Finerman’s Firm owns (KFT)
Finerman’s Firm owns (MSFT)
Finerman's firm is short (IJR)
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman’s firm owns S&P 500 puts
Finerman’s firm owns Russell 2000 puts

For ART HATFIELD
Morgan Keegan received compensation for non-investment banking services from (UPS), (FDX) in the past 12 months.

CNBC.com and wires

  Price   Change %Change
CLF
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TDW
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ISH BAR 20YTB
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