While Greece has “backup” private-sector involvement that could buoy its economy, the Portugal CDS 5-Year was at record levels, McDonald said on “Fast Money.”
“It’s decoupling from the rest of the group,” he said.
The PTCD5 was $1,453.03 in evening trading.
McDonald likened the situation with Portugal and Greece to a financial event horizon in 2008.
“The political will to save Lehman Brothers — and I talk about this in my book — was really taken away from Bear Stearns,” he said.
McDonald called it a bearish signal in the intermediate term.
“It doesn’t necessarily mean the world’s going to blow up tomorrow,” he said.
However, the bull-bear ratio being at the highest levels since February didn’t mean a euro currency trade was the answer for the next couple of weeks.
“The euro was so oversold toward the end of the year. It’s in a nice run here,” McDonald said. “For the next week, the euro looks fine — for the next two weeks.”
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Trader disclosure: On Jan. 25, 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 VRTS; Terranova is long IBM; Terranova is long SU; Terranova is long SJM; Terranova is long BRCM; Terranova is long MUB; Terranova is long EMC; Terranova is long F; Terranova is long SBUX; Terranova is long V; Terranova is long AXP; Terranova is long APC; Terranova is long OXY; Terranova is long TRLG; Terranova is long JNPR; Terranova is long CSCO; Terranova is long WFM; Terranova is long XOM; Terranova is long UNG April $5 puts; Finerman is long (JPM); Finerman is long (BAC); Finerman is long (PLCM); Finerman is long (IBM); Nathan is long AAPL Jan puts; Nathan is long BAC Jan puts; Nathan is long MS Jan puts; Nathan is long NFLX Jan calls; Nathan is long INTC Jan put spreads; Nathan is long MSFT puts; P. Najarian is long AAPL; P. Najarian is long BAC calls; P. Najarian is long C; P. Najarian is long JPM calls; P. Najarian is long MSFT; P. Najarian is long INTC; P. Najarian is long JCP
For Karen Finerman
Finerman's fund is long (AAPL)
Finerman's fund is long (JPM)
Finerman's fund is long (PLCM)
Finerman's fund is short (SPY)
Finerman's fund is short (MDY)
For Mike Khouw
CNBC.com with wires.