As the market begins to trade sideways, which stocks do the charts suggest you buy?
Within individual industries there’s a case to be made for being very much in favor of one player at the expense of another player, explains Oppenheimer Chief Market Technician Carter Worth. It’s called a "pairs trade" where you buy one and sell the other and I think this market lends itself to that.
Charts:IBM vs. Hewlett Packard
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Charts:IBM vs. Hewlett Packard
I recommend getting long IBM and shorting Hewlett-Packard , says Carter Worth.
I'd be long both, counters Guy Adami.
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Charts:ExxonMobil vs. Apache
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Charts:ExxonMobil vs. Apache
I think you go long Exxon and get rid of Apache , says Worth, because Apache has probably gone too far too fast.
I like getting long Exxon but I'd short some of the EM names instead, such as Petrobras, counters Tim Seymour.
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Charts:Procter & Gamble vs Clorox
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Charts:Procter & Gamble vs Clorox
I’d take the long side of P&G and short Clorox , says Worth because P&G has much more international exposure.
Be careful of these trades, warns Tim Seymour. Sometimes they play themselves out over only a few days.
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Trader disclosure: On Apr. 16, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (AAPL), (BIIB), (CSCO), (TSO), (YHOO), (XLF), (AMR), (ETFC), (ATI); Najarian Owns (EBAY) Calls, (IBM) Calls, (BSC) Calls, (COP) Calls, (MSFT) Calls, (HK) Calls; Najarian Is Short (INTC) Calls; Najarian Owns (LEH) Puts; Seymour Owns (AAPL), (CSCO), (INTC), (MER), (MSFT), (TSO); Seygem Asset Management Owns (TIE), (COP), (PKX), (GGB); Oppenheimer & Co. Is A Market Maker In (GOOG), (AMZN), (EBAY), (BIIB), (MLNM), (CSCO), (RIMM), (MSFT), (INTC); Oppenheimer & Co. Has Provided Investment Banking Services For (XTO) In The Past 12 Months; Oppenheimer & Co. Has Received Compensation For Investment Banking Services From (XTO) In The Past 12 Months; GE Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"