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Pros: Don’t Pin Recovery Bets on BRICs

With Brazil's stock market trading in bear territory, is the global growth engine - otherwise known as the BRIC nations - starting to sputter out?

According to Fast trader Steve Cortes - in a word, 'yes!' If you're a bull betting the recovery could really gain a foothold in emerging nations - Cortes would like a word.

On Thursday Brazil became the first of the BRICs to enter a bear market, with the Bovespa correcting 20 percent since November. And he takes the performance as a negative sign for other emerging nations.

Of course, there's another side to that coin. Bulls would argue weakness in Brazil is specific to Brazil which is experiencing serious inflation. Those same bulls will tell you the government of Brazil may have to do something drastic to curtail growth. Hence the sell-off.

But Cortes isn't hearing it. “Three of the four BRICs are now down on the year," he says. He takes weakness in Brazil as just one in a series of signs that emerging nations have overheated all together. "If you were pinning your hopes on a recovery for growth out of China, India or Brazil, I think that is a very poor bet,” Cortes said.

In fact, if you're looking to put money to work, Cortes thinks “the United States is far stronger than those places" and suggests deploying capital here.

Guy Adami agrees that the US is where it’s at, with the S&P holding up well for two years.

“Every sell-off in the S&P has been a tremendous buying opportunity," Adami said.

That's not to say Adami is a blind buyer, he's not. He also said, with the market again testing the 50 day moving average at some point buying will be the wrong trade.

And Adami isn't the only market pro saying it. Widely followed analyst Dick Bove told us earlier in the weekto shed all positions in the stock market. In his words, 'the sky is falling.'

Click here to go to Dick Bove: Make No Mistake, The Sky ‘Is’ Falling

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Trading Starbucks Before Earnings

Java giant Starbucks reports after the bell Thursday. With the stocks already up 26 percent so far this year, how should you trade it?

Trader Patty Edwards thinks it’s definitely a long-term hold.

“They’re raising prices as coffee prices are coming down. They’re making changes to the food offerings that they’ve got,” she said.

But she said the story is really about the fact that 25 percent of their business is international, which is growing much faster than the United States.

Steve Cortes also likes this space. He thinks coffee prices, which are at a six-month low, work in favor for the retailers. But there’s another reason he is jonesing for some java.

“I like addiction stocks. I like ‘have-to’ products,” he said.

For Steve Grasso, the reason he likes Starbucks is a simple one.

“I think anybody that can get me to pay $3, $4, $5, that’s pretty much a good business plan for a cup of coffee,” he said.



















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Housing turnaround?

Could Thursday’s surprising jump in existing home sales be the sign of a turnaround that investors are looking for?

To get some insight, the Fast traders spoke with Richard Dugas, CEO of PulteGroup .

To see the full interview, watch the video now!

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Trader disclosure: On July 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Cortes is short Copper; Cortes is short (LULU); Cortes is short (LVS); Cortes is short (IYT); Cortes is short the Euro; Cortes owns US Treasuries; Cortes owns (PM); Steve Grasso owns (AKS); Steve Grasso owns (AMD); Steve Grasso owns (ASTM); Steve Grasso owns (BA); Steve Grasso owns (BAC); Steve Grasso owns (C); Steve Grasso owns (D); Steve Grasso owns (JPM); Steve Grasso owns (LIT); Steve Grasso owns (LPX); Steve Grasso owns (MAR); Steve Grasso owns (MHY); Steve Grasso owns (NDAQ); Steve Grasso owns (PFE); Steve Grasso owns (PRST); Steve Grasso owns (XHB); Steve Grasso owns (XLB); Steve Grasso owns (XLI)

Patty Edwards
Edwards Owns (AMZN) For Clients
Edwards Owns (AAPL) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (DD) For Clients
Edwards Owns (POT) For Clients
Edwards Owns (SBUX) For Clients
Edwards Owns (PM) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (PGM) For Clients
Edwards is owns (PM)
Edwards is owns (XLK)
Edwards is owns the Canadian Dollar

Steve Grasso
Stuart Frankel & Co and it’s partners own (AAPL)
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
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 (MU)
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 own (QQQQ)

For Richard Dugas
**No Disclosures

For Dennis Gartman
Funds Managed By Dennis Gartman own (LNG)
Funds Managed By Dennis Gartman own (FAX)
Funds Managed By Dennis Gartman own (MCP)
Funds Managed By Dennis Gartman own (PGH)
Funds Managed By Dennis Gartman are short S&P futures
Funds Managed By Dennis Gartman own Gold
Funds Managed By Dennis Gartman own the Australian Dollar
Funds Managed By Dennis Gartman own the Canadian Dollar
Funds Managed By Dennis Gartman are short the Sterling
Funds Managed By Dennis Gartman are short the British Pound
Funds Managed By Dennis Gartman are short the Yen
Dennis Gartman owns Brent
Dennis Gartman is short (WTI)
Dennis Gartman owns (LNG)
Dennis Gartman owns (CF)
Dennis Gartman owns Gold
Dennis Gartman owns the Swiss franc
Dennis Gartman owns the Australian Dollar
Dennis Gartman is short the Euro
Dennis Gartman owns British Pound Sterling

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