Instant Insights with the Fast Money traders
Guy Adami had been cautious but on Friday's Fast Money admits that the market performance has been outstanding and says, "You can't discount that." He thinks the market could continue higher because, "Not only do the bears want it to go down but the bulls want it to go down too, so they can buy more. And when both want something to happen, it typically doesn't."
Joe Terranova is impressed by the rotation happening in the market. "Late in the seesion we saw a rotation into laggards such as health care and consumer stocks," he explains. It suggests the market may be finding new leadership.
Turning attention to the bond market, yields broke out to their highest levels in about 7 months after the jobs report showed the best increase in average hourly earnings in a year; investors took it as a sign of inflation.
What’s the trade?
I think these higher rates are good and consistent with a recovering economy, says Karen Finerman.
CRAZY WEEK FOR CRUDE
Crude sold off Friday after a volatile week on speculation that the crisis in Egypt had reached a tipping point.
"The market is moving on rumors that Mubarak may fly the coop. If he leaves it may alleviate tensions," says Phil FLynn, analyst at PFGBest Research in a Reuters interview.
What’s the trade?
The charts suggest to me oil is overextended, says Guy Adami, I think crude trades down to about $85.
I thought the price action in energy equities was lousy on Friday, says Joe Terranova. I pared back my position, though I still believe for the long-turn, the trade is long or flat.
I’m seeing a lot of options activity in the oil services names, says Pete Najarian. But right now, you’ve got to be nimble in this space.
FAST FLASH: SMH HITS NEW 52 WEEK HIGHS
The traders are also closely watching the action in semis after the SMH hit a fresh 52 week high on Friday with Broadcom and Nvidia two of the biggest winners of the day.
What's the trade?
The SMH may have more upside because Intel is a big part of this ETF and it hasn’t participated in recent gains, says Pete Najarian. It could play catchup.
In this space, I think Nvidia has more room on the upside and I’d also take a look at Qualcomm, says Guy Adami. Also I’m interested in JDSU on a pullback.
I’d put Infinera and Finisar , on the radar, says Stephen Weiss.
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CNBC.com and wires