Now’s not the time to own financials, “Fast Money” team said Monday.
The sector landed on the traders' radar after moves by Goldman Sachs and Bank of America caught their attention.
Bank of America’s move to cut 30,000 jobs as part of its effort to slash expenses by $5 billion by 2013 didn’t appear to help the stock.
And it wasn’t good news for Goldman Sachs, who broke below the $100 level Monday morning for the first time since March 2009.
“So what does that tell you about financials?” Weiss asked. “It tells you that you don’t want to own them.”
Patty Edwards said while at some point Goldman may look attractive, the time isn’t now thanks to the market’s volatility.
“How unreasonable can the market remain and how long can it remain so? It can remain so longer than I can remain solvent. I’m out,” she said.
OptionMonster’s Jon Najarian also doesn’t see a compelling reason to own financials right now. However, if you owned them, he said wouldn’t be selling them.
Steve Grasso said there is no place to hide in the financial sector, including the so-called safety plays like Wells Fargo .
In fact, he’s got his eye on the S&P’s all important 1140 level of support. He thinks if 1140 holds, the index could bounce to 1156. But if it goes below 1140, we could fall to 1121.
“If the market’s going lower, it’s taking everything with it. So you can’t hide,” Grasso said.
So if think the market’s going lower, he said, you should be getting defensive and shorting stocks.
Weiss agreed, but added that if financials go up, the market’s going to “explode to the upside.”
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Trader disclosure: On Sept. 12, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Jon Najarian owns call spreads in (ANF). Jon Najarian owns call spreads in (AAPL). Jon Najarian owns call spreads in (XOM). Jon Najarian owns (CIGX). Patty Edwards is long (XLK). Steve Cortes is long (JPM). Steve Cortes is long (COP). Steve Cortes is long (QCOM). Steve Cortes is long (AAPL). Steve Cortes is long (NS). Cortes is long (ETP); Cortes is long (X). Steve Cortes is long (TWM). Steve Cortes is long (SDS).
Trutina is long (AMZN)
Trutina is long (AAPL)
Trutina is long (C)
Trutina is long (GOOG)
Trutina is long (MSFT)
Trutina is long (GLD)
Trutina is long (ORCL)
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