Outside The Stocks: Munis

In Monday’s power rankings, the Fast Money traders take a look at the top five states with the biggest budget gaps.

They follow:

States With Biggest Budget Gaps

California - $17.9 Bln.
Illinois -$13.5 Bln.
New Jersey - $10.7 Bln.
New York -$8.5 Bln.
Connecticut -$5.1 Bln.
Source: WSJ

Municipal bonds have been hard hit because of concerns about states' spending into year's end. But could this be a buying opportunity instead?

For insights we turned to top muni bond expert Alan Zafran of Luminous Capital. He tells us munis may be oversold due to all the negative headlines and recommends putting a few names on the radar in anticipation of a bounce:

iShares S&P National AMT-Free Bond Fund
BlackRock Muni Intermediate Duration Fund
Trade Thesis: Year-End Muni Bond Bounce

But these are trades, he adds. Trends hitting the market on the long end of the curve may persist. I would not recommend buying long-term muni bonds as a long-term investment at this point.

Hear more from Zafran. Watch the video now!

______________________________________________________
Got something to to say? Send us an e-mail at [e-mail] and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to [e-mail].

Trader disclosure: On November 22, 2010, the day this video was recorded, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami Owns (AGU), (C), (NUE), (MSFT), (INTC), (BTU), (GS); Weiss Owns (MEE), (TSN), (QCOM), (JWN), (UAL), (CYT), (DIS); Weiss Is Short (UNH) Calls; Weiss Is Short (LCRX); 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; Finerman Owns (AAPL); Finerman Owns (BAC); Finerman's Firm Owns (GENZ); Finerman's Firm And Finemran Own (HPQ); Finerman's Firm And Finerman Own (JCG); Finerman's Firm Owns (JPM) Leaps, Finerman Owns (JPM); Finerman's Firm Owns (SKS); Finerman's Firm Owns (TGT); Finerman's Firm Owns (WMT); Seymour Owns (AAPL), (BAC), (INTC), (IPI), (POT), (HPQ); Jon Najarian Owns (SNDK); Jon Najarian Owns (AKAM); Najarian Owns (CRUS), Is Short (CRUS) Calls

GE Is The Parent Company Of CNBC
NBC Universal Is The Parent Company Of CNBC

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (C)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (POT)
Accounts Managed By Kanundrum Capital Own (XLF)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (JJG)
Accounts Managed By Kanundrum Capital Own (IEF)
Accounts Managed By Kanundrum Capital Own (EWH)
Accounts Managed By Kanundrum Capital Own (XLK)
Accounts Managed By Kanundrum Capital Own (SMH)
Accounts Managed By Kanundrum Capital Own (XBI)
Accounts Managed By Kanundrum Capital Own (RTH)
Accounts Managed By Kanundrum Capital Own (SLX)

For Mike Khouw
Cantor Fitzgerald Is A Market Maker In (GMCR)

For Doug Kass
***No Disclosures

For Youssef Squali
Jefferies Is A Market Maker In (NFLX)

For Alan Zafran
***No Disclosures

CNBC.com with wires.