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Don’t Let Greece Lull You into Risk-On Trades: Pros

If you think the election of the pro-bailout party in Greece is a turning point in the EU financial crisis, the Fast Money pros say you’re mistaken.

Top trader Jon Najarian tells us there’s plenty to go. As a huge sports nut, Najarian says if the crisis were a football game, we’d only be at the end of the second quarter.

“More than half of the game is left to play. Unless we go into overtime!” says the co-founder OptionMonster.com with a twinkle in his eye.

Najarian may be making a small joke with his overtime comment, but he's a very serious trader and he tells us seriously that pros are focused on Spain and Italy. “Until we can put a moat around them, it won’t be over.”

On Monday, the cost of borrowing rose for the two nations with the yield on Spain's 10-year bond going above the 7 percent widely viewed as unaffordable. Italy's was just above 6 percent.

Najarian and other pros say until the financial outlook for both nations clears up, the global economy and by proxy the stock market face serious headwinds.

On CNBC'sFast Money Halftime Report, trader Joe Terranova, chief market strategist for Virtus, adds that the biggest pitfall for traders right now is to think risk-on assets will rally. They won't.

“With more trouble ahead in Europe, you can't expect the dollar to do anything but get stronger. In turn, that’s a problem for commodities and all related trades.”

(That’s because commodities nominated in dollars become more expensive for buyers of other currencies.)

“Make no mistake, energy, materials and industrials – are not in play,” he says. Only strong dollar trades will work.

“Trading is futile,” adds Josh Brown, author of The Reformed Broker blog. He says in this market, "you’ve got to stick with what’s working and that high dividend yielding companies.”

What do you think? We want to know!

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Posted by CNBC's Lee Brodie

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Trader disclosure: On June 18, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long WMB; Joe Terranova is long SJM; Joe Terranova is long UPC; Joe Terranova is long WFM; Joe Terranova is long LPX; Joe Terranova is long SNDK; Joe Terranova is long IBM; Joe Terranova is long HYG; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long CNX; Jon Najarian is long AAPL CALL SPREADS; Jon Najarian is long NFLX CALL SPREADS; Jon Najarian is long INTC CALL SPREADS; Jon Najarian is long WNR CALL SPREADS; Jon Najarian is long WMT CALL SPREADS; Jon Najarian is long AMZN CALL SPREADS; Jon Najarian is long FB CALL SPREADS; Jon Najarian is long MS CALL SPREADS; Jon Najarian is long DDMG; Jon Najarian is long CIGX; Jon Najarian is long CME; Jon Najarian is long CBOE; Josh Brown is long EBAY; Josh Brown is long COP

Ron Insana
Nothing to Disclose

For Mark Grant
Nothing to Disclose

For Tom Fitzpatrick
Nothing to Disclose

For Colin Gillis
Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report: MSFT
Lead or Co-manager: BGC Financial LP and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for Microsoft within the last 12 months. BGC Financial LP and/or its affiliates has not received compensation for investment banking services in the last 12 months from MSFT

For Sanjay Sakhrani
KBW expects to receive or intends to seek compensation for investment banking services from eBay in the next three months: EBAY


CNBC.com with wires.

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