No.1 - The Summer Trade

It's nearly summer folks, a time when Wall Street slows and many of us take vacations. Consequently, stock prices tend to be sluggish. But maybe not this year… It appears that some sectors are lining up to breakout of those summer doldrums and benefit from the increased electricity and gasoline use that comes with the season. What’s your trade?

Eric Bolling explains that after the blackout of 2003, regulators came to realize that energy grids are fragile and susceptible to power failures. Consequently, regulators allowed utilities to raise rates so they can fix the infrastructure. Eric feels that makes the Utilities SPDR (XLU) a smart investment.

He adds the Utilities SPDR (XLU) is up 17% year to date, but took a 7% dip, recently. He says buy this dip! Other plays include Con Ed (ED) and Constellation (CEG).

Guy Adami likes Public Service Enterprise Group (PEG) on a valuation basis.

Jeff Macke echoes Eric’s trade and adds he likes Callaway Golf (ELY) believing this company will do well as people start using their products in the warm weather.

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Trader disclosure: On May 24, 2007, 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 (CLF), (EMC), (INSP), (KR); Bolling Owns (ICE),(NMX), Gold, Silver
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