Stocks accelerated their sell-off across the board in another volatile session Thursday as fears over a global economic slowdown intensified and ahead of the widely-followed monthly unemployment report.
Everyone focused on the carnage, but the “Fast” traders said there may be some pockets of opportunities to make money.
So where are the valuations so low that it may make sense to buy in this volatile market?
Steve Cortes likes consumer staples like Kraft Foods because he thinks the price of commodities are going to come down and that benefits food companies such as this one.
He also is intrigued by Bank of America , which he anticipates buying in the next several days. While it’s a name he once trashed, he thinks the valuation is getting very attractive.
“It is not exposed as many banks are to Europe,” he said. “It’s a domestic play.”
Steve Grasso has his eye on Abercrombie & Fitch, but as a technical trade.
If you look at the trading range it tops out near $80, with $70 typically being an attractive entry point, he said.
He also likes Dominion Resources, which yields over 4 percent, as a utility play.
Guy Adami also likes Abercrombie, as well as Tiffany & Co .
“When you see an Abercrombie unchanged or slightly higher on a day like today, I think it is trying to tell you something,” he said.
Brian Kelly is looking at the 2-year US Treasury, which could potentially catch a bid in light of the fact that Bank of New York Melon will now charge customersto hold cash in its bank.
"Why wouldn’t you just put your money in treasury?” he asked.
KRAFT TO SPLIT IN TWO
There was some good news in Thursday’s sell-off. Kraft Foods was up after reporting it would break into two publicly traded companies. It also beat profit estimates in the second quarter and raised guidance.
Jeffries’ analyst Scott Mushkin told the “Fast” traders he thought it was a “great deal all around.” So what does it mean moving forward?
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