Obamacare Decision - Trading Today Big Mistake: Stephen Weiss
In the wake of the Supreme Court decision to uphold Obamacare the Fast Money traders had a slew of trading ideas.
(For more details on the decision, click here to go toObamacare Moves Forward: So What Happens Now?)
Following you’ll find insights from trader Stephen Weiss, managing partner at Short Hills Capital.
Click below for insights from other Fast Money traders:
> Stephanie Link, director of research at TheStreet> Steve Grasso, director of institutional sales trading at Stuart Frankel> Josh Brown, author of The Reformed Broker blog
“This was one of the biggest surprises I can remember,” says trader Stephen Weiss.
It was widely believed that the Supreme Court would strike down the individual mandate, but of course, that didn’t happen. And that’s sent a ripple through the health care space generated a slew of pops and drops
However, if you’re looking to trade the moves, trader Stephen Weiss says don’t do it.
“I wouldn’t do anything today,” he reveals. “Even though I think Wellpoint’s sell-off is tempting, I'm going to stay away.”
Weiss believes that the story isn’t over and as a result, it’s impossible to make an educated investment.
“What if, the public doesn’t like this – and Romney shoots higher in the polls,” he says. That changes the trade.
Republican presidential candidate Mitt Romney has vowed that if elected President on his first day in office he’ll move to strike down the health care act.
“And some companies like Caterpillar have said the law presents a huge cost," he adds. That's a factor too.
Caterpillar has said the legislation would increase its insurance costs by at least 20 percent, or more than $100 million, just in the first year of the health-care overhaul program.
"You have to let the dust settle, then go through and see who’s incorporated what in their guidance before you make any moves.”
What do you think? We want to know!
Posted by CNBC's Lee Brodie
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Trader disclosure: On June 28, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Stephanie Link is long AAPL; Stephanie Link is long JPM; Steve Weiss is long QCOM; Steve Weiss is long VZ; Steve Weiss is long T; Steve Weiss is long VOD; Steve Weiss is long ANF; Steve Weiss is long HK; Steve Weiss is long TOT; Steve Weiss is short JCP; Steve Weiss is short X; Steve Weiss is short JEC; Josh Brown is long WMT; Josh Brown is long JPM; Josh Brown is long XBI
For Kris Jenner
Kris Jenner is long UNH
Kris Jenner is long AGP
Kris Jenner is long ALXN
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