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No. 2 - Trading With The Smart Money

Activist investor Bill Ackman Monday disclosed a 9.6% interest in Target (TGT). Meanwhile, The Wall Street Journal is reporting that billionaire Carl Icahn has followed Nelson Peltz into Kraft (KFT). Should you trade with the smartest men on The Street or will a game of "follow the leader" leave you a loser?

Karen Finerman likes to trade with the names mentioned above. Often times when an esteemed investor such as Ackman buys 5% of a company – she takes a closer look. She also reveals to the panel that she’s long Kraft.

Eric Bolling also recommends following smart money because he feels they have proven track records. Eric likes Nelson Peltz.

Jeff Macke agrees and adds do your own research.

Pete Najarian says although Ackman has been brilliant, he thinks Ackman is wrong about Target. Pete expects TGT stock to go lower.

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Trader disclosure: On July 16th 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Macke Owns (ATVI), Bolling Owns (DIS), (ICE), (MPEL), (NMX), (T), (XOM), Corn; Bolling Is Short (FXI) And Owns (FXI) Puts; Finerman's Firm And Finerman Own (C ) (FTWR); Finerman's Firm Owns (KFT); (MO); (GLNG); S&P Puts; Russell 2000 Puts; (TGT) Calls, Finerman's Firm Is Short (IYR)