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Burned by Qualcomm

A long position in Qualcomm looked like a hot trade but all it did was burn Guy Adami. What’s the trade now?

Adami made the fateful call on March 15th. (Click here to go to the video.) “I think Qualcomm is still the place to go,” he said at the time. “The stock still should go significantly higher."

Adami thought the technicals lined up well for Qualcomm. “Above $65 to me is still in breakout mode.”

Well the stock traded up to $68 – but on WednesdayQualcomm issued a forecast that spooked the Street, and the stock moved sharply lower.

In fact, as of Thursday April 19th, Adami’s trade was in the red by about 4%.

So what’s the trade now?

“Now you have to stay away, Adami counsels. “As long as the stock trades below $65, stay away. But if the stock breaks above $65 I’d get back in.

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Trader disclosure: On Apr 19, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long IBM; Stephanie Link is long FCX; Stephanie Link is long IBM; Simon Baker’s firm owns AAPL; Simon Baker’s firm owns BAC; Simon Baker’s firm owns GS; Simon Baker’s firm owns JPM; Simon Baker’s firm owns GDX; Simon Baker’s firm owns MS; Simon Baker’s firm owns NFLX; Simon Baker’s firm owns GLD; Simon Baker’s firm owns XLF; Simon Baker’s firm owns IBM; Simon Baker’s firm owns WMT; Simon Baker’s firm owns JOYG; Simon Baker’s firm owns ADSK; Simon Baker’s firm owns DELL; Simon Baker’s firm owns IBM; Simon Baker’s firm owns MSFT; Simon Baker’s firm owns KEY; Simon Baker’s firm owns QCOM

For Rob Breza
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