During the week that we are likely to break the S&P 500 record, the reason for that record is coming to visit. The Vice Premier of China begins two days of talks with Treasury Secretary Hank Paulson Tuesday in Washington. While China's voracious demand for natural resources has driven this global bull market, it's currency and overheating economy could put the bull in jeopardy. What should investors expect?
Eric Bolling says he loves China and the growth story, but he’s a little nervous that China is overheating. He says it’s okay to take profit and reveals today he started taking a short position. He thinks there will be an 8%-10% correction in China and it will spill over in the US stock market.
Eric adds he’s not bearish, it’s just a correction and he will stop out if China continues to rip.
Pete Najarian says if that should happen, he sees a correction as a buying opportunity because China will try and grow through the Olympics.
Guy Adami thinks Jacobs Engineering Group (JEC) is a great China play for infrastructure. That, he says, can’t be held back.
And a trade update. In September Guy recommended The9 Ltd (NCTY) as a China play. The company is up 50% since the call. He adds any investors who are long in this stock should take profits.
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Trader disclosure: On May 21, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders
Bolling Owns (DIS), Gold, Silver, Coffee, Sugar; Bolling is Short (FXI) Najarian Owns (AAPL), (GS), (OXPS), (CME), (BOT)