Brian Kelly – Things Weren’t As Bad As I Thought

The Fast pros have spotted new signs of life in China. Its purchasing managers index rose back above 50 in September, pointing to expansion.

Is this a number a game changer?

According to trader Brian Kelly – yes.

”The PMI shows there is still growth in China,” he says but there are other reasons to feel bullish.

”Fed officials are talking about expanding the balance sheet. Those factors combined with the market moves makes me think – things weren’t as bad as I thought they were.”

He’s playing this thesis long Australia via the EWA .

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Trader disclosure: On Oct 24, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Kinahan is long stock/short options BAC; Kinahan is long stock/short options C; Kinahan is long through options GS; Karabell is long AAPL; Karabell is long GOOG; Karabell is long MS; Karabell is long IBM; Karabell has short puts on AMZN; Karabell is long FCX; Karabell is long MSFT; Karabell is long CAT; Karabell is long FDX; Grasso owns AA; Grasso owns AKS; Grasso owns ASTM; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns KEG; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Najarian has short calls on CAT; Najarian has short calls on CNX; Najarian has short calls on MMM; Najarian has short calls on NUAN; Najarian is long CME; Najarian is long CBOE; Najarian is long CIGX

For Zach Karabell
Rivertwice owns AAPL
Rivertwice is short XLF
Rivertwice is short SMH
Rivertwice is long IBM
Rivertwice is long QCOM
Rivertwice has long calls on MOS
Rivertwice is short ANR

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No disclosures

For Steve Grasso
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 JPM
Stuart Frankel & Co and it’s partners own MET
Stuart Frankel & Co and it’s partners own MSFT
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 UAL
Stuart Frankel & Co and it’s partners own XRX

For Stephen Volkmann
I, Stephen Volkmann, CFA, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report.

As is the case with all Jefferies employees, the analyst(s) responsible for the coverage of the financial instruments discussed in this report receives compensation based in part on the overall performance of the firm, including investment banking income. We seek to update our research as appropriate, but various regulations may prevent us from doing so. Aside from certain industry reports published on a periodic basis, the large majority of reports are published at irregular intervals as appropriate in the analyst's judgment.

For Marc Chandler
Brown Brothers Harriman makes a market in currencies

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For Urs Dur
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For Brian Kelly
Shelter Harbor Capital is long EWA
Shelter Harbor Capital is long ASX 200 futures
Shelter Harbor Capital is long Euro

For Colin Gillis
The analyst primarily responsible for this research report, and whose name appears on the front cover, certifies that: (i) all of the views expressed in this research report accurately reflects his or her personal views about any and all of the subject securities or issuers featured in this report; and (ii) no part of any of the research analyst's compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed by the research analyst in this report.
Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from (YHOO), (MSFT), and (AAPL).

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