GO
Loading...

Could Week-End Development Rock Your Portfolio?

Friday, 18 Nov 2011 | 12:46 PM ET

On Friday chatter on the floor had everything to do with the potential of a game changing event happening over week-end when the NYSE is closed.

Specifically, money pros were trying to understand what the market ripple might be after reports suggested the ECB could lend money to the IMFand then the IMF could turn around and lend the money to European countries.

That’s a big deal because there are restrictions at the ECB prohibiting the amount of money the central bank can directly lend to the individual member nations. Presumably, this would circumvent the restriction.

Euro Bailout & Gold Outlook
CNBC's Steve Liesman reports on markets waiting to hear if the IMF will get a loan from the ECB, and the Fast Money traders take a look at whether gold is losing its safe-haven appeal.

And that matters to your portfolio because “a big Europe headline that’s positive – and I think we could bounce in the S&P,” explains Steve Grasso.

Trader Stephen Weiss says the same.

Although he thinks the developments are “a little crazy,” he concedes “this could put a floor under the market – but it has to be big enough – the amount that the ECB leands to the IMF has to be big enough - that’s what critical.”

Trader Jon Najarian agrees but suggests the move will be tradable – but not investible. “This is something like the 15th time that we’ve heard Europe was close to getting a deal done.”

Not until we actually get some kind of deal will any kind of market reaction be truly meaningful, he says.

In other words, this may be a case of buy the rumor and sell the news.


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On Nov 18, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss owns KO; Weiss owns HPQ; Weiss owns RIMM; Weiss owns EUO; Weiss owns WLP; Karabell owns AAPL; Karabell owns MS; Karabell owns IBM; Grasso owns AKS; Grasso owns AMR; Grasso owns ASTM; Grasso owns AVAV; 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

For Rebecca Patterson
No disclosures

For Mary Ann Bartels
No disclosures

For Zach Karabell
Rivertwice has short puts AMZN
Rivertwice is short XLF
Rivertwice is short SMH
Rivertwice owns IBM
Rivertwice is short EK

For Efraim Levy
I have no affiliation with any company I am speaking about in this interview.

I have no ownership interest in any company I am speaking about in this interview.

S&P Capital IQ’s other affiliates may provide services to the companies that are the subject of my report.

For David Shove
As to each company covered on this website, the analyst hereby certifies that the views expressed accurately reflect the analyst’s personal views about the subject securities or issuers. Each analyst also certifies that no part of the analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Ltd. are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.





CNBC.com with wires.

  Price   Change %Change
S&P 500
---

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.