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With Gains North of 50%, Stick with What’s Working?

Wednesday, 28 Dec 2011 | 5:51 PM ET

The Fast Money traders have been saying for months that in this current market, stick with what’s working.

In other words, buy relative strength and avoid relative weakness.

But with that thesis in full swing for months now, traders have bid a handful of the leaders sky high.

In fact, we’ve identified 7 stocks that are up at least 50% ytd. Take a look:

ComapnyGain YTD
Cabot Oil & Gas +102%
El Paso+90%
Intuitive Surgical+78%
Mastercard+66%
Humana+60%
Chipotle+59%

Ross Stores

+53%


Considering the sharp gains, how should you trade it?

Strategy Session with the Fast Money traders

Stephen Weissremains bullish on Humana . "I think it’s cheap and I’m not worried about helath care legislation being repealed. More and more people are going toward managed care. And at 8 times earnigns it’s cheap."

Pete Najarian is worried that Intuitive Surgical is starting to get a little ahead of itself. "I like the name and I like the DaVinci device they make which provides less invasive surgery options. However, it’s tethered to the economy. How many more hospitals can afford to buy their million dollar devices?"

Brian Kelly says the story is still good at Chipotle. "They’ve been able to raise prices. And if the stock can push above $350, we're looking at a big break out, which is technically bullish. The only caveat is if commodity prices creep higher."

The 50% Rebate Club: Buy or Beware in 2012
The Fast Money traders with the play on stocks that returned over 50% to investors in 2011, and whether they are getting too expensive.






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Trader disclosure: On Dec. 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Kelly is long KRE; Kelly is long IWM; Kelly is long US T-bonds; Kelly is short the Yen; Kelly is short the Swiss Franc; Kelly is short UBS; Kelly is short CS; Weiss is long QCOM; Weiss is long GM; Weiss is long WLP; Weiss is long AAPL calls; Karabell owns shares of APPLE (AAPL); Karabell owns shares of CATERPILLAR (CAT); Najarian is long AAPL; Najarian is long C; Najarian is long INTC; Najarian is long MOS; Najarian is long YHOO; Najarian is long WFC

Ron Insana
No disclosures

Jim Rogers
Rogers owns gold
Rogers owns silver

Nick Pope
Dahlman Rose & Company, LLC has not provided investment banking services to Energy XXI in the past 12 months. It intends to seek to be a financial advisor or to engage in investment banking services with the subject company and may receive compensation for such services during the three months following publication of this report. As a result, investors should be aware that the firm might have a conflict of interest in the future that could affect the objectivity of this report.
Dahlman Rose & Company, LLC makes a market in the securities of Energy XXI.
Dahlman Rose & Company intends to seek to be a financial advisor or to engage in investment banking services with McMoRan Exploration and may receive compensation for such services. As a result, investors should be aware that the firm might have a conflict of interest in the future that could affect the objectivity of this report.
Dahlman Rose & Company, LLC intends to seek to be a financial advisor or to engage in investment banking services with Rosetta Resources and may receive compensation for such services during the three months following publication of this report. As a result, investors should be aware that the firm might have a conflict of interest in the future that could affect the objectivity of this report.
Dahlman Rose & Company, LLC makes a market in the securities of Rosetta Resources, Inc.

Shaw Wu
Sterne, Agee & Leach, Inc. makes a market in the shares of the subject company.
Sterne, Agee & Leach, Inc. has, over the past 12 months, managed or co-managed a public securities offering or provided other investment banking services for the subject company.
Sterne, Agee & Leach, Inc. received compensation for products or services other than investment banking services from the subject company in the past 12 months.
The Sterne Agee analyst who has active coverage on this company owns a position in the subject company.
Sterne, Agee & Leach, Inc. or its affiliates beneficially own 1% or more of any class of common equity securities of the subject company.



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  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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