On a day in which financial stocks posted mixed performance, the “Fast Money” traders looked ahead to Goldman Sachs ahead of earnings, which it releases Wednesday.
“If you take a look at what earnings estimates have done, they have been ratcheted way, way down along with the price on Goldman,” said Patty Edwards of Trutina Financial. “I am not a believer in the bigger banks or even anything other than maybe a super regional, and I haven’t even made myself buy that yet.”
Edwards said she would be staying away from Goldman Sachs.
“I think someone who is a little more nimble than me might be able to get in there and play it on a bounce,” she said. “I don’t like the idea of what’s coming out of the trading side of this, though.”
Goldman shares closed at $97.68, down 1.29 percent. The company is scheduled to report earnings early Wednesday.
Trader Anthony Scaramucci said although he had recommended Goldman stock at $20 higher, he liked it now.
“At $120 a share book value and a fantastic management team buying back stock in a prodigious way, this company’s going to move higher in the next six months,” he said.
Josh Brown of Fusion Analytics dismissed a rise in financial stocks as a rally in a bear market.
“They’re all head fakes, every single one of them,” he said. “Every time we get either a short squeeze or a semi-decent quarter, you get this 6½ percent pop. It’s only suckers buying in. There’s distribution almost immediately after. I don’t want to own a financial that’s paying at least a 3 percent dividend yield. None of the big banks can or will in the foreseeable future.”
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For “Fast Money” pro Joe Terranova, the story was really about managing expenses.
“I don’t want to own Citi. I don’t want to own Bank of America,” he said. “I don’t know the expense story, and I think in 2012 that’s going to be critical.”
Jon Najarian of OptionMonster.com noted that XLF, the financial ETF, has been steadily moving toward $14 per share. The ETF saw a 10 percent increase in the past month.
“People have optimistic outlook for the financial sector, at least for the short-term,” he said.
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Trader disclosure: On Jan. 17, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova is long V; Terranova is long CSCO; Terranova is long TRLG; Terranova is long JNPR; Terranova is long DECK; Terranova is long NFLX; Terranova is long XOM; Terranova is long SBUX; Terranova is long AXP; Terranova is long EMC; Terranova is long MUB; Terranova is long IBM; Terranova is long UNG April $5 puts; Scaramucci is long GOOG; Scaramucci is long JPM; Scaramucci is long GS; Scaramucci is long IBM; Edwards is long PM; Dicker is long Vale; Dicker is long CHK
For Anthony Scaramucci
Anthony Scaramucci is one of 8 national finance chairs for Mitt Romney campaign
SkyBridge Capital Is A Fund Of Funds Manager
Scaramucci held a fundraiser for Mitt Romney and contributed to the Romney campaign
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Trutina is long SPDR Gold Trust (GLD)
Trutina is long MSFT
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Trutina is long T
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Trutina is long PM
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