Halftime: Can You Say Risk-On, Baby?!
On Wednesday, traders were glued to their TV’s wondering if President Obama’s first news conference since March would derail the positive momentum churning in the market.
And from the looks of things – he didn’t. The S&P traded near its highs of the session between 11:45am and 12:45pm ET - the time during which Obama spoke.
”We really have sentiment moving to the positive,” says Fast trader Pete Najarian. And if the latest moves in the Vix are any indication, Najarian thinks the trend could stick around a while.
“We’ve only had the volatility index close once below 18 since June 1st. And we’ve been trading above the 200-day since June 15th. The fact that the Vix is pulling back and is staying back on the lows of the day speaks volumes about the sentiment.”
Also Najarian says other signs are emerging that suggest the market is growing much more comfortable with risk. During an interview on CNBC, “Larry Fink of Blackrock said if he could, he would be 100% in equities. That’s a vote of confidence for the market!"
(Click here to go to BlackRock's Larry Fink Wants to Be 100% in Stocks)
Trader Steve Cortes agrees. “The tone is clearly risk-in right now,” he says. But Cortes thinks that due to developments in Europe. As you likely know, Greece’s parliament said yes to some new austerity measures, clearing the way for another bailout package.
However, if Cortes’ thesis holds true – risk may be off rather soon. He expects the market to quickly change focus from Athens to Madrid and Rome. In other words he expects financial woes to present themselves again – this time in Italy and Spain.
Is Apple going after the mass market in a big way? According to an RBC analyst, shoppers may get a free iPhone this fall when they sign up for it with a wireless provider.
The introduction of a free iPhone wouldn't be such a radical move, since AT&T has already priced a 3GS phone at $49. However the 3GS iPhone would work only on GSM networks, so it wouldn't work on Verizon.
What’s the trade?
Trader Patty Edwards calls the move the Gilette strategy, in other words, give away the razor and people will buy your blades "It will probably send a whole lot more people to iTunes," she says.
Trader Josh Brown agrees with Patty Edwards. "It’s about more people having access to the Apple platform. This is another kick in the ribs for rivals such as Motorola ."
Investors bid crude higher again Wednesday, sending it back above $95 a barrel. Oil has now officially gained back what it lost after last week's SPR release.
What’s the trade?
Although oil has bounced, trader Steve Cortes still thinks the larger trend is lower. "Considering where oil was over the last 7 weeks, popping to $95 isn’t material," he says. Cortes doesn't expect oil to stabilize until it hits the 80’s.
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Trader disclosure: On June 29, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian is long (AAPL); Pete Najarian is long (C); Pete Najarian is long (MS); Pete Najarian is long (MRVL); Pete Najarian is long (CROX); Pete Najarian is long (TCK); Pete Najarian is long (MOS); Pete Najarian is long (AKAM); Pete Najarian is long (GE); Pete Najarian is long (TEVA); Pete Najarian is long (PFE); Pete Najarian is long (MRK); Pete Najarian is long (MSFT); Pete Najarian is long (HPQ); Pete Najarian is long (NSC) calls; Pete Najarian is long (GGB) calls; Cortes owns (SVU); Cortes owns (SO); Cortes owns treasuries; Cortes is short the Euro; Cortes is short the Pound; Cortes is short the S&P; Cortes is short Silver; Cortes is short (BIDU); Cortes is short Corn
For Patty Edwards
Edwards Owns (GLD) For Clients
Edwards Owns (SLV) For Clients
Edwards Owns (SDS) For Clients
Edwards Owns (NKE) For Clients
Edwards Owns (POT) For Clients
Edwards Owns (AAPL) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (ORCL) For Clients
Edwards Owns (TGT) For Clients
Edwards is long S&P500 For Clients
Edwards is long Nasdaq 100 For Clients
Edwards is long (SDS) For Clients
Edwards is owns (XLK)
Edwards Owns (JWN) For Clients
Edwards Owns (QCOM) For Clients
Edwards Owns (PM) For Clients
Edwards Owns (ANDE) For Clients
Edwards owns (PM)
For Josh Brown
Fusion Analytics Clients Own (AAPL)
Fusion Analytics Clients Own (C)
Fusion Analytics Clients Own (XOM)
Fusion Analytics Clients Own (JPM)
CNBC.com with wires.