No.1 - Mega-Gulp

Amid all the rallying, there’s a proverbial elephant in the room! We’re talking about the biggest companies in the world, the so-called mega caps. They’re trailing this bull market advance.

Since the start of this year, the S&P 500 is up almost 7%. But Rydex Russell Top 50 ETF (XLG), representing the largest 50 stocks, is only up 3.3%.

Case in point is AIG (AIG); the insurance giant is little changed so far this year ahead of its earnings tomorrow after the bell.

Are mega-caps due for a breakout?

Tim Strazzini says he likes AIG, but a lot of companies in the insurance sector including AIG are up, because of elevated premiums from Katrina and then good weather last year. He questions whether they can continue turning those kinds of profits.

Turning attention to other mega-caps Jeff Macke believes their time will come. And when it does he thinks Wal-Mart (WMT) will come into play.

Eric Bolling adds that most deals are happening below the mega-cap level. And he agrees, eventually that will play out.

Guy Adami recommends investors play the Rydex Russell Top 50 ETF (XLG) which is made up of the 50 largest US companies, to diversify risk.

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Trader disclosure: On May 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; Strazzini Onws (CMLS) Bolling Owns (NMX) Gold, Silver, Sugar, Coffee Bolling Is Short Crude Oil