Halftime: Talk of Greece Exiting EU Triggers Unexpected Impact

On Friday, pro traders were keeping an ear to the ground after market rumors suggested the European union might not be quite so united after all.

According to reports sourcing Germany’s Spiegel Online, Greece has raised the possibility of exiting the euro zone and reintroducing its own currency.

Greek officials have denied the report, with one official calling the report “ridiculous”, however that didn't stop the Street from put money behind the news.

At first glance, you’d think the news would be bullish for the euro; that without Greece, the EU would be stronger.

But market pros sold euro and sold it hard on the news.

What gives?

Money in Motion trader Amelia Bourdeau of Westpac Institutional Bank tells us the euro sold off because the headline thrusts sovereign debt woes back into the spotlight. “What this goes to show is that the euro still has a lot of headline risk.”

She explains that ECB chief Jean Claude Trichet recently signaled that a rate hike is unlikely at the next ECB meeting. “That’s what the market had been focused on and the market is disappointed in that,” she says.

And to amplify the disappointment, this headline reminds the market that Greece as well as other member nations are struggling with serious sovereign debt issues – issues that pros think the ECB will have to tackle, collectively.

“It’s more likely Greek debt will be restructured and when that announcement comes it should weight on the euro,” she says.

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TECH DOGS HAVE THEIR DAY?

Elsewhere in the market, the Fast Money traders were closely watching the action in former tech dogs Yahoo! and Dell , both of which hit new 52-week highs in Friday's session.

How should you trade it?

Pete Najarian has spotted unusual options action in Yahoo!. A large volume of call buying suggests to Najarian that investors still have upside expectations.

In the space Steve Grasso is watching Micron. The stock typically trades in a range he says. “If it closes above $11 I’m bullish that it moves to 11.50. And if it closes below 11, I’d expect it to go to $10.40,” he says.

If you’re more of a long-term investor Patty Edwards suggests looking at a different dog, Intel . With the dividend and announcement of a new chip, she thinks the stock is attractive.

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Trader disclosure: On May 6, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (D); Grasso owns (HOV); Grasso owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST); Najarian owns (PFE), (MRK), (TCK), (AAPL), (AKAM), (C), (HPQ), (TEVA), (MS), (RSX), (GE), (MSFT), (YHOO), (VLO); Najarian is long (RIMM) calls; Najarian is long (AVL) calls; Najarian is long (XLF) calls; Najarian is long (PMCS) calls; Najarian is long (XL) calls; Najarian is long (HBC) calls; Najarian is long (EWZ) Calls; Najarian is long (XLI) calls; Najarian is long (FCX) calls

For Brian Kelly
Accounts Managed by Brian Kelly Capital are long australia dollar
Accounts Managed by Brian Kelly Capital own (SLV)
Accounts Managed by Brian Kelly Capital own (JNPR)
Accounts Managed by Brian Kelly Capital own (DIA)
Accounts Managed by Brian Kelly Capital own (AGO)
Accounts Managed by Brian Kelly Capital own (CAF)
Accounts Managed by Brian Kelly Capital own (CTXS)
Accounts Managed by Brian Kelly Capital own (EWP)
Accounts Managed by Brian Kelly Capital own MCP calls
Accounts Managed by Brian Kelly Capital are short U.S. Dollars

For Patty Edwards
Edwards owns (AAPL) for clients
Edwards owns (CVX) for clients
Edwards owns (GLD) for clients
Edwards owns (MSFT) for clients
Edwards owns (PEP) for clients
Edwards owns (SLV) for clients
Edwards owns (SLW) for clients
Edwards owns (V) for clients
Edwards owns (XOM) for clients


For Steve Grasso:
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (EWJ)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MSFT)
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (UAL)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners are short (QQQQ)
Stuart Frankel & Co and it’s partners are short (AAPL)






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