---
ARE STOCKS ABOUT TO BREAK HIGHER
Looking at the market broadly, the S&P S&P was little changed on Thursday, after disappointing data called the strength of the recovery into question.
In fact, weekly initial claims for unemployment benefits rose the most in six months, the Labor Department said, suggesting the jobs market still faces headwinds.
The news offset strength generated by a weaker dollarweaker dollar which typically generates a bid in commodities and natural resource names.
How should you position now?
We’re sitting around the 1283 level on the S&P and we can’t get any momentum in either direction, says Guy Adami. I think we may be looking at resistance but then again, the market doesn’t typically give you this long to sell the highs.
Maybe the weaker dollar is the catalyst the equities market need to finally break higher, muses Steve Grasso.
---
TRADE UPDATE: SOFT COMMODITIES
Again the traders are watching the action in soft commodities such as cotton cotton , corn corn , and soybeans soybeans , all of which continued to rally due to dollar weaknessdollar weakness (and after a crop report out earlier in the week suggested supply might be challenged.)
By contrast other commodities – namely metals such as gold gold and coppercopper did not participate in the gains.
What should you make of it?
It’s important to note that there’s a divergence in commodities, explains Fast Money anchor Scott Wopner, who's filling in for Melissa Lee. The metals are going down perhaps on economic data but softs are rising on supply and demand issues.
What’s the trade?
I think Deere Deere works, says Guy Adami.
On Wednesday’s Fast Money strategic investor Dennis Gartman suggested a long position in one of the many grains ETFs. “Pick one and use it, I think they’re going higher,” he said.
Following are some of the biggest:
Powershares DB Ag Fund ETF (DBA)Powershares DB Ag Fund ETF (DBA)
Market Vectors Agribusiness ETF (MOO)Market Vectors Agribusiness ETF (MOO)
Dow Jones UBS Grains Sub Index ETF (JJG)Dow Jones UBS Grains Sub Index ETF (JJG)
ELEMENTS Rogers Int’l Commodity Index (RJA) ELEMENTS Rogers Int’l Commodity Index (RJA
Read More:
Dennis Gartman: Food Supply Has Just Been Materially Reduced
______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com 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 fastmoney@cnbc.com .
Trader disclosure: On Jan. 13, 2011, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders;
Guy Adami owns (AGU), (C), (BTU), (GS), (INTC), (MSFT) and (NUE). Steve Cortes is short (LVS). Steve Cortes is short (XRT) vs. S&P. Cortes is short (XHB) vs. S&P. Steve Cortes is short Nasdaq futures. Steve Cortes owns (TSN), (EXC), (SVU) and (CLX). Steve Cortes is long U.S. Treasuries. Steve Grasso owns (ASTM), (BA), Grasso owns (BAC), (BWC), (C), (CSCO), (JPM), (LIT), (LPX), (MHY), (NDAQ), (PFE), (PRST) and (S). JJ Kinahan owns (INTC), (MOS), (YHOO), (C) and (TBT). JJ Kinahan is short (SPY). JJ Kinahan is short (NFLX).
GE is the parent company of CNBC
NBC Universal is the parent company of CNBC
GUY ADAMI
Adami's wife works at (MRK)
STEVE GRASSO
Stuart Frankel & Co and its partners own (AAPL)
Stuart Frankel & Co and its partners own (AMGN)
Stuart Frankel & Co and its partners own (BP)
Stuart Frankel & Co and its partners own (CUBA)
Stuart Frankel & Co and its partners own (GE)
Stuart Frankel & Co and its partners own (GERN)
Stuart Frankel & Co and its partners own (HPQ)
Stuart Frankel & Co and its partners own (HSPO)
Stuart Frankel & Co and its partners own (NWS.A)
Stuart Frankel & Co and its partners own (NY)
Stuart Frankel & Co and its partners own (OPE)
Stuart Frankel & Co and its partners own (PDE)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
Stuart Frankel & Co and its partners own (RDC)
Stuart Frankel & Co and its partners own(TLM)
Stuart Frankel & Co and its partners own (XRX)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners own (UNM)
Stuart Frankel & Co and its partners are short (QQQQ)
Stuart Frankel & Co and its partners are short (AAPL)
ADAM BENJAMIN
Jefferies & Co. is a market maker in (INTC)
Within past 12 mos., Jefferies & Co has received non-IB comp. from (INTC)
Jefferies & Co. is a market maker in (QCOM)
Jefferies & Co. is a market maker in (BRCM)
Jefferies & Co. is a market maker in (MRVL)
Jefferies & Co. is a market maker in (CRUS)
NISHU SOOD
Sood has no disclosures
DENNIS GARTMAN SOT (1/12/2011)
Dennis Gartman was long March KC Wheat on 1/12/2011
Dennis Gartman was long soybeans on 1/12/2011
Dennis Gartman was short the Yen on 1/12/2011
Dennis Gartman was long the Canadian Dollar on 1/12/2011
Dennis Gartman was long the Aussie Ddcollar on 1/12/2011
Dennis Gartman was long gold, short sterling on 1/12/2011
Dennis Gartman was short the Euro on 1/12/2011
CNBC.com with wires.