Instant Insights with the Fast Money traders
For a ‘tell’ Pete Najarian suggests keeping an eye on the Vix. “There’s not a big spike in the Vix,” right now he explains. “If it gets above 17 that’s concerning but we’re not seeing that right now.” That suggests that investors are not terribly nervous about these developments.
Strategic investor Dennis Gartman however in on the other side; he is concerned by these developments. "The fact that the commentary comes from the Israel's foreign minister makes it quite serious, he says." If you're looking for a trading idea, he thinks developments are supportive to oil and he's a buyer of any weakness.
Joe Terranova thinks geo-political tensions in the Middle East are bullish for Canada, which is also a major oil producing nation. He suggests long positions in two Calgary-based companies Suncor or Canadian Natural Resources. “Or go long the FXC – the Canadian dollar,” he says.
If you're looking to play the space, Pete Najarian suggests keeping an eye on oil services. He says options investors are “rolling up February upside OIH calls and rolling them into the March 170 calls.” Najarian also suggests looking at Halliburton and Diamond Offshore – names that he says "are really working."
JJ Kinahan suggests playing oil with some of the majors. "Exxon is a well run company," he reminds "also BP should benefit."
Elsewhere in the market, the traders suggest keeping an eye on Netflix after the LA Times said that Disney has quietly decided to hike its wholesale prices on new-release DVDs.
What’s the trade?
I’m not a Netflix fan but I wouldn’t go short because the momentum higher is still very strong, says Brian Kelly.
Dell led tech higher after beating on EPS and revenue, and reporting a 16% jump in servers and networking sales.
What’s the trade?
Dell has been under- loved and under-owned and it wouldn’t surprise me to see the Street start to upgrade the stock, says Joe Terranova.
I have a tough time getting excited, counters JJ Kinahan.
CALL OF THE DAY: RIM UPGRADED TO BUY FROM SELL
The desk has RIM on the radar after Citi Investment Research upgraded the BlackBerry maker to ‘Buy’ from ‘Sell’, saying it stands to benefit from rival Nokia’s new plan to embrace Microsoft's mobile operating system.
Nokia's change of strategy — the company is ditching its current smart phone software in favor of Windows Phone 7 — creates a multi-quarter gap in Nokia products and promotions by wireless carriers, analyst Jim Suva said in a note to investors.
Fast Money host Melissa Lee explains: “The new Nokia / Microsoft phone won’t come out for many quarters,” she says.
“Carriers don’t won’t to spend money promoting a phone that’s going to be obsolete and they don’t want to promote a phone that won’t be on the market until the end of the year. That’s what creates opportunity for RIM.”