No. 2 - Let The Earnings Begin

What's Your Trade as Alcoa Kicks Off the Market's Make or Break Earnings Season?

Tomorrow Alcoa (AA) kicks off earnings season – and the markets could be in for a wild ride. Overall earnings growth this quarter is expected to plummet from 10% to under 4%. As Wall Street traders fasten their seatbelts, which sectors and stocks should they be buying and which should they be selling?

Guy Adami says Alcoa is more of a takeover story – the stock is up 35% since October. Although he expects earnings to be “fine”, he recommends investors say away from this name.

Guy does like Nucor (NUE) in the space.

Eric Bolling says “Miners, refiners and early bird diners.” If you watch the show regularly you know Eric has said this before.

In a nutshell he likes miners for gold and recommends Companhia Vale do Rio Doce (RIO) and Cameco Corp (CCJ). He likes refiners for gasoline and recommends Tesoro (TSO) and Chevron (CVX). “Early bird diners” refers to Eric’s theory that certain companies benefit from the aging population trend and he recommends HCR (Manor Care).

Jeff Macke likes small caps for this earnings season. He recommends investors buy iShares Russell 2000 Index (IWM) because “the market has digested the bottom.”

Tim Strazzini also likes small caps, here. And expects them to do “okay for 1Q earnings.”

Tim adds the play is the chip space. He says short Advanced Micro Devices (AMD) and Micron (MU). However, as a sector he expects semi’s will bottom. And suggests Intel (INTC), Broadcom (BRCM) and SanDisk (SNDK)will do well through the end of the year.

Jeff Macke disagrees with Tim about shorting AMD – and tells investors to short this stock, later.

Questions? Comments? [e-mail]

Trader disclosure:
On APR 9, 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 (XOM), Gold, Silver Strazzini Owns (SNDK), (YHOO), (TIN)