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Time to Re-Think Being a High-End Retail Bull?

Morgan Stanley just downgraded shares of Coach, Nordstrom and Tiffany’s to Equal Weight from Overweight. Should you re-think being a retail bull?

”People see this kind of call and they immediately think it's negative but the analyst was looking at the valuations," explains Pete Najarian. All these stocks have already performed very well,” he says. “But longer –term I think the space is just fine.”

In fact Pete's brother Jon is hoping for a sell-off.

”If the call triggers a pull back, I’m a buyer,” he says. “Unfortunately, the call isn’t really dragging down these stocks relative to the decline in the overall market.”

Trader Patty Edwards is a little more cautious. She thinks traders should separate global retailers from domestic retailers.

”I’d differentiate between stores such as Tiffany and Coach which get a sizable amount of revenue from non-US sources versus Nordstrom which is strictly from the US,” she says.

Brian Kelly is on the other side.

“I would not buy on the dip. We’re looking at a potential recession in Europe and slow growth in the US. It’s not a space where I’d want to establish new positions.

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Trader disclosure: On Nov 4, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; J. Najarian is long ANR; J. Najarian is long AKS; J. Najarian is long MS; J. Najarian is long GMCR; J. Najarian is long FSLR; J. Najarian is long DB; J. Najarian is long CME; J. Najarian is long CBOE; J. Najarian is long CIGX; J. Najarian is short SKUL; 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 S; Grasso owns XLU

For Brian Kelly
Shelter Harbor Capital is long SPY
Shelter Harbor Capital is long GLD
Shelter Harbor Capital is long MOO
Shelter Harbor Capital is long Soybeans
Shelter Harbor Capital is short CAD
Shelter Harbor Capital is Euro Stoxx

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 MET
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 Rick Summer
No disclosures

For Patty Edwards
Trutina Capital is long AAPL
Trutina Capital is long GLD
Trutina Capital is long INTC
Trutina Capital is long AMZN
Trutina Capital is long GOOG
Trutina Capital is long JWN
Trutina Capital is long SBUX
Trutina Capital is long TGT

For David Flynn
No disclosures

For Jens Nordvig
No disclosures

For Sanjay Shrestha
Lazard Capital Markets LLC makes a market in FSLR securities.



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