Watch for Pullback in This Homebuilder: Pro
Following are Monday's Pops & Drops.
Find out what’s going up, what’s going down and whether our traders would double down, fade or run in the other direction!
The catalyst:Roper Industries, an industrial manufacturer, has agreed to purchase Sunquest Information Systems, a maker of diagnostic and laboratory software for $1.42 billion in cash. Sunquest, which specializes in patient management and diagnostics software, will complement Roper’s existing medical business.
The trade: It’s a good stock but this is not the day to pile in, says trader Guy Adami, managing director of stockMONSTER.com.
The catalyst: Investors likely took profits after the stock popped earlier in the week on strong earnings. On Thursday,PulteGroup reported a sharp jump in new orders as home buyers took advantage of record affordability and rock-bottom interest rates.
The trade: If the stock continues to pull back, I’d take a look, says Stephanie Link, director of research at TheStreet.
The catalyst: Again investors were likely taking profit after shares surged earlier in the week. The catalyst may have been earnings from rival Arch Coal which were not as bad as feared.
The trade: The sector is due for a rally, says Steve Grasso, director of institutional sales trading at Stuart Frankel, and if I were forced to buy a coal name it would be Alpha Natural.
The catalyst: The move may have been technical, Visa’s stock traded up to a 52-week high.
The trade: I like Visa, says Jon Najarian, co-founder OptionMonster.com, but at current levels I’d hold off.
* You can find Monday's Pops & Drops about 5 minutes into this video clip.
Posted by CNBC's Lee Brodie
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Trader disclosure: On July 30, 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 WFC; Stephanie Link is long MCD; Jon Najarian is long AAPL CALL SPREADS; Jon Najarian is long CSCO CALL SPREADS; Jon Najarian is long WMT CALL SPREADS; Jon Najarian is long V CALL SPREADS; Jon Najarian is long F CALL SPREADS; Jon Najarian is long NXY CALL SPREADS; Jon Najarian is long SHAW CALL SPREADS; Jon Najarian is long BBY CALL SPREADS; Jon Najarian is long HLF CALL SPREADS; Jon Najarian is long GLUU; Jon Najarian is long CIGX; Jon Najarian is long CBOE; Jon Najarian is long CME
For Dan Fuss
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For Toni Sacconaghi
Bernstein currently makes a market in the following companies AAPL / Apple Inc.
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Mike Harris is long GOLD COMEX FUTURES
CNBC.com with wires.