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Market Pros: Post-Election Money Making Strategies

With the landscape potentially changing dramatically post-election, the Fast Money desk breaks down all the trades you’ll ever need.

From broad market bets to niche trades don’t miss a single money making strategy.

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TRADE THE VOTE: BROAD MOVES

Investors pushed the S&P higher Tuesday on the hopes Republicans will take the House -- and maybe the Senate too.

And with a GOP victory, the Street is betting on a period of business friendly compromises or at least gridlock that will generate an overall legislative slowdown.

How should you position now?

It seems to me that investors are waiting for a pullback, says Joe Terranova. There’s been a lot of chatter that the Street was in a buy the rumor and sell the news mode. However I think the biggest risk facing investors is that the pullback doesn’t come. And if it does come, the hard trade is typically the right trade -- and the hard trade is staying with the momentum. My counsel is to remain long, particularly the commodities.

The market has been very focused on the election as well as QE2, counters Dan Niles of Alpha One. On Wednesday the market will probably get a pop - but in my opinion it's a last pop. After that I expect the market goes back to trading on fundamentals and away from the macro risk-on and risk-off trade.

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TRADE THE VOTE: ENERGY

Among the Wall Street hotspots, perhaps none was more closely watched than energy sector, which outpaced the rest of the market on hopes of a GOP sweep.

How should you position?

This is probably the space that benefits most from a GOP win, explains Dan Clifton of Strategas. A Republican win could change rules governing drilling permits, nat gas regulations, tax increases and a delay of emission rules. All of those are powerful drivers for the energy space.

I think oil challenges it’s 2010 highs in the near-term, says Joe Terranova. I’m not sure this is because of the election so much as increased consumption from industrialized world. I’d play it with integrated names such as Occidental or Hess as well as the oil services names.

I’m bullish BP , adds Karen Finerman. But this isn’t an election play. I just think their business starts to move back to normal.

I’m on the other side of these trades, says Steve Cortes. If oil breaks above $85 and sustains that level for a few days I’d turn bullish but as far as I’m concerned oil is trading in a range between $80-$85 and ultimately I expect it breaks lower.

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TRADE THE VOTE: UTILITIES

Also in focus this election season were the utility stocks, with investors driving these big dividend payers higher on a possible compromise over a dividend tax cut.

How should you position now?

With a 39.6% tax rate on dividends, the dividend tax is going to make a big difference, says Dan Clifton of Strategas. And utilities are also impacted by EPA rules. Both of these factors are powerful catalysts for this space

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TRADE THE VOTE: FINANCIALS

Wall Street is also closely watching the outcome of the midterm elections due to its likely impact on the banking sector.

How should you position?

I think financials are a buy and I’m long JPMorgan , reveals Brian Kelly. If we’re going to have an economic recovery - and it seems the Fed is committed to making that happen – the financials have to participate. Capital must flow through the economy for a recovery and as a result I think valuations in the financials are attractive.

I also like financials, adds Karen Finerman.

It was troubling that the money center banks and small bank stocks didn’t rally Tuesday, on an otherwise pretty positive day, counters Steve Cortes. I can’t get excited by these names. However on a pullback I’m a buyer of brokers such as Goldman, Morgan Stanley and the exchanges. They’re trading very well.

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Looking for more ideas about how to trade banks. According to Ed Groshans of Height Analytics, if Republicans win the House some financials win while others lose. Here’s his list.

Financials Post-Election: Winners
- Money Center Banks,
- Payment Networks,
- Mortgage Insurers

Financials Post-Election: Losers
- Community Banks,
- Credit Cards,
- Consumer Finance Companies

*Hear more from Groshans. Watch the video now!







______________________________________________________
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Trader disclosure: On November 2nd, 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 (APA), (AAPL), (AXP), (C), (GOOG), (GS), (FCX), (IBM), (NOV), (ORCL), (PCP), (PEP), (PFE), (UPL), (VRTS), (XBI); Finerman owns (AAPL); Finerman & Finerman’s Firm owns (BAC); Finerman & Finerman’s Firm owns (JPM); Finerman’s Firm owns (MSFT); Finerman’s Firm owns (WMT); 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; Cortes is short (AAPL); Cortes owns (GOOG); Cortes is short (RSX); Cortes is long S&P 500; Cortes owns (K); Cortes owns (TSN); Cortes owns (CLX); Cortes is short crude oil; Cortes is short gold; Cortes owns U.S. Treasuries; Clifton owns (BA), (CNX), (FDX), (LLY), (LO), (MA), (MCO), (MO), (NSC), (PPA), (RHI), (SO), (TE), (X), (MUB)

For Brian Kelly
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 (SWC)
Accounts managed by Kanundrum Capital own (PPLT)
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (GPRE)
Accounts managed by Kanundrum Capital own (GS)
Accounts managed by Kanundrum Capital own (HD)
Accounts managed by Kanundrum Capital own (JPM)
Accounts managed by Kanundrum Capital own (XHB)
Accounts managed by Kanundrum Capital own Euros
Accounts managed by Kanundrum Capital are short Japanese Yen

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 (CMS)
Virtus Investment Partners own more than 1% of (CSC)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (FCFS)
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 (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 (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SOA)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (WMB)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DRYS)

For Dan Niles
Niles and Alpha One Capital hold positions in (AAPL)
Niles and Alpha One Capital hold positions in (WD)
Niles and Alpha One Capital hold positions in (BRCD)
Niles and Alpha One Capital hold positions in (STX)
Niles and Alpha One Capital hold positions in (X)
Niles and Alpha One Capital hold positions in (AA)

For Ed Groshans
In the normal course of its business, Height Analytics and its broker dealer affiliate, Height Securities, may seek to perform investment banking and other services for companies, and receive compensation in connection with such services. As such, investors should assume that Height intends to seek investment banking and other business relationships with any and all companies mentioned in today’s appearance.

For Dan Greenhaus
***No Disclosures***

For Scott Nations
Nations is long (SPY)



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