STOCKS SHAKE OFF RATE FEARS
Who says the bulls are down for the count? On Thursday both the Dow and S&P pushed their way higher on better than expected economic info.
Weekly initial jobless claims fell to 601,000, which was better than expected; the data gave oil another boost and raised hopes that the recovery remained on track.
"If you are seeing a pickup in the economy, that's going to be good for commodities. The more you produce, the more oil you are using," explains Anthony Conroy, head trader for BNY ConvergEx, a Bank of New York affiliate.
How should you be positioned?
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I wouldn’t wait for a pullback before getting in, counsels Brian Schaeffer of VDM Capital. It seems to me consumers may be in better shape than previously thought and that could be a big catalyst. I’d get involved right here.
The rally off the March lows appears to be in tact and I’m bullish, adds Bill Strazzullo of Bell Curve. I think we get to 1000 on the S&P. However, from a technical perspective the 950 level is key. We’ve got to clear that hurdle over the next few days and if that doesn’t happen I think we pull back to 920.
It seems to me the market is stuck in a range with the SPY trading between 93 and 95, explains Jeff Tomasulo of SMB. I won’t drink the bullish Kool-Aid until the SPY closes above $95.50.
OIL TOPS $72
U.S. crude oil futures traded above $72 a barrel on Thursday, boosted by a higher demand forecast from the International Energy Agency and a weaker dollar.
The path of least resistance is higher, explains Bill Strazzulo. Forget that the fundamentals don’t warrant higher oil prices. In my opinion if you get short oil in front of $85 you’ll get steamrolled by momentum.
TOPPING THE TAPE NOW: TECH, LED BY PALM
Shares of Palm traded higher Thursday after the Pre maker named Jon Rubinstein as its new CEO, hoping the former Apple executive will usher in a new era for a company seeking to revive its fortunes.
Rubinstein, 52, takes the helm on Friday, succeeding Ed Colligan, a 16-year Palm veteran who will take some time off and then join Elevation, Palm said in a statement.
What's the trade?
Before I develop a trading thesis on Palm, I want to see if the Pre can take market share away from Apple and RIMM, explains Jeff Tomasulo. As for the rivals, if Apple can trade above $140 I’d take a look and I definitely like RIMM .
Banks stocks traded higher on Thursday after a Keefe, Bruyette & Woods analyst upgraded Bank of America to "Outperform" from "Market Perform," noting that it is among the cheapest of its big bank peers.
Analyst Jefferson Harralson also raised his target price on the stock by $4.50 to $16.50.
How should you trade banks?
I like financials, explains Jon Najarian. I think the glass is half full and I’m a buyer.
TRADE TO GO: WATCH BB&T
Jeff Tomasulo recommends longBB&T as a purely technical trade -- above $23 – with a first sign of resistance around $25. If he's interpreting patterns correction, he thinks the stock could break out.
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Trader disclosure: On June 11th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders;
Tomasulo Is Short (GS)
Tomasulo Owns (RIMM)
Tomasulo Owns Oil
Tomasulo Owns Gold
Tomasulo Owns (IBM)
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