It seems a Street fight is breaking out with the pros clearly unable to agree on whether the hottest trade of the year has any more room to run.
We’re talking commodities.
The bulls say global growth is back. The bears say so is the dollar rally.
So, which is it?
The supply / demand ratio seems bullish to me, says Brian Kelly. I think that trumps all else.
I’m also bullish especially due to the growing middle class in emerging markets, adds Tim Seymour. I think the best way to play the space is with fertilizers.
Long-term I agree but in the short-term I think the market is in pause mode. And if risk comes off the table it typically comes off in this space first, counters Guy Adami.
Also, look at the run in some commodities, adds Karen Finerman. There is so much more than just demand built into these prices, it makes me a little bit afraid. At these levels the smallest thing could really change sentiment.
MASSEY ENERGY EXPLORING SALE
Check out the one-day chart of Massey Energy.
You can see shares spike higher midday after published reports said the company’s board had “agreed to begin exploring a potential sale after having received takeover interest from several companies.”
What’s the trade?
Typically where there’s smoke, there’s fire, says Stephen Weiss. I expect to hear positive news later in the week.
DID OPRAH MARK THE ‘TOP’ IN NETFLIX?
With Netflix more than 200% higher ytd, when will this trade crash and burn?
Oprah Winfrey may be waving you out, right now.
Fast Money executive producer wrote about this trend at length in his daily post. Click here to go to Jump the Oprah: ‘Favorite Thing’ Mark Netflix Top?
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