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Pros: Egypt Unrest Generates Dozens Of Trades

Thursday, 10 Feb 2011 | 5:23 PM ET

After hours the Fast traders were watching developments in Egypt attempting to determine how events would impact moves in oil, gold as well as stocks.

Once again, rage swept across the streets of Cairo after President Hosni Mubarak refused to step down despite two weeks of bloody protests.

Although Mubarak ceded some powers to the vice president crowds considered the move more of the same and they could not be quelled.

"Leave! Leave!" chanted hundreds of thousands who had gathered in Tahrir Square. But Mubarak said no, that he would remain in power and oversee an orderly transition until an election in September.

What now? How should you trade?

Word on the Street
The Fast Money traders take a look at today's top business stories.

Impact on Oil and Commodities

Strategic investor Dennis Gartman, author of The Gartman Letter, thinks the unrest in Egypt will likely spread across the Middle East. That suggests further gains in oil .

In turn he says higher oil, "is going to be very detrimental to Japan. Does Japan have any oil of its own? No." When asked how he'd trade it he says, "I’m a buyer of gold, Canada and the Aussie and I’m a seller of yen in equal dollar amounts against the whole trade."

Brian Kelly agrees. He says these developments are bullish for oil, as well as gold and silver.

Rich Ilczyszyn, Lind-Waldock Senior Market Strategist is also bullish oil. “I think there’s tons of opportunity. I’d recommending an out of the money call spread .”

If you want to play oil, Guy Adami thinks the best way to do it is long refiners. I like VLO and TSO," he says. Also he likes Apache on a pullback.

Joe Terranova suggests looking at second derivative trades. "Higher oil puts coal back in play," he says. I’d play it long Peabody and Teck Resources .

Impact on Currencies and other Nations

Andy Busch of BMO reminds the desk that food inflation is behind the unrest in Egypt. “That puts pressure on central banks in emerging markets to raise rates,” he says.

Once Egypt's markets open Joe Terranova thinks money may flow out of the Egypt ETF. "And I think it goes straight into Canada and Russia," he says. "I think the Russia ETF is a great way to play it," he says.

David Riedel of Riedel Research thinks unrest in Egypt will trigger a flight for safety and generate a bid for the US dollar. Also, he thinks all emerging markets take a hit, with China and India trading down the most.

Impact on S&P

Karen Finerman doesn't want American investors to freak-out. "I don’t think of Egypt as that big a player," she says. Except for Egypt focused funds she doesn't expect unrest in Egypt to have much impact on the American investor.

"I think there's plenty of connections between what's going on emerging markets and the earnings of global companies," counters David Reidel. Although it may take several months he thinks big multi-nationals will start to say that consumers in emerging market are not as robust as they had thought and will have to revise earnings accordingly.




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Trader disclosure: On Feb 10, 2011, 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 (VRTS); Terranova owns (C); Terranova owns (UPL); Terranova owns (GM); Terranova owns (PEP); Terranova owns (APA); Terranova owns (CVI); Terranova owns (SU); Terranova owns (CNQ); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Adami's wife works for (MRK); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman's firm is short (IJR); Finerman's firm is long S&P puts; Finerman's firm is long Russell 2000 puts; Finerman owns (AAPL); Finerman's firm owns (AAPL); Finerman owns (BAC); Finerman's firm owns (BAC) leaps; Finerman's firm owns (BBY); Finerman owns (C); Finerman's firm owns (GLW); Finerman owns (GOOG); Finerman owns (HPQ); Finerman's firm owns (HPQ); Finerman's firm owns (IBM); Finerman owns (JPM); Finerman's firm owns (JPM) and (JPM) leaps; Finerman's firm owns (MCD); Finerman owns (MSFT); Finerman's firm owns (MSFT); Finerman's firm owns (TGT); Finerman's firm owns (WMT); Finerman and Finerman's Firm Own (BP)

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For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (DPUKF)


For Dennis Gartman
Funds Managed By Dennis Gartman Are Short The Yen
Funds Managed By Dennis Gartman Are Long The Australian Dollar
Funds Managed By Dennis Gartman Are Long The Canadian Dollar
Funds Managed By Dennis Gartman Are Long Gold
Funds Managed By Dennis Gartman Are Short The S&P
Funds Managed By Dennis Gartman Are Short The Yen
Funds Managed By Dennis Gartman Are Long Gold
Funds Managed By Dennis Gartman Own (F)
Funds Managed By Dennis Gartman Own (MCP)

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (BAC)
Accounts Managed By Kanundrum Capital Own (ELX)
Accounts Managed By Kanundrum Capital Own (QLGC)
Accounts Managed By Kanundrum Capital Own (IAU)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (DRYS)
Accounts Managed By Kanundrum Capital Own (RDC)
Accounts Managed By Kanundrum Capital Own US Dollar
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (LYC.AU)
Accounts Managed By Kanundrum Capital Are Short The Australian Dollar
Accounts Managed By Kanundrum Capital Are Short The Yen

For Rich Ilczyszyn|
Ilczyszyn has no disclosures

For Andy Busch
Busch has no disclosures

For John Gabriel
Gabriel has no disclosures

For Brian Stutland
Stutland has no disclosures

Fast Fire 12/17/2010
Terranova had no disclosure in (RIMM) on 12/17/2010

Pete Najarian SOT 2/4/11
Pete Najarian owned (PEP) on 2/4/11


CNBC.com and wires

  Price   Change %Change
APA
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BTU
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GLD
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RSX
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SLV
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TCK.B
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TSO
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USO
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VLO
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MV EGYPT
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  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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