Time to dip into the Fast Money mailbag and answer more of your questions. Carol writes, “Can you describe what stocks to invest in, and which stocks to sell prior to the Fed's lowering interest rates?
Carol writes, “Can you describe what stocks to invest in, and which stocks to sell prior to the Fed's lowering interest rates? I'm primarily interested in what will happen to gold and minerals.”
Guy Adami thinks the rate cut is already priced into the gold trade. And he doesn’t like trading equities on the rate cut, either. In fact, he recommends Carol avoid trading equities for the foreseeable future.
#2 Robert from California
Robert writes, “I own puts on the S&P 500. We have a decision to make prior to the FOMC meeting next week: Are you going to take profits on your bearish bet prior to the Fed's announcement?”
Karen Finerman explains that she looks at the volatility index and as the VIX goes up she sells puts. She adds that she still owns puts. And Karen adds a note about the tax implication on index options - she says it doesn’t matter of you hold them for a minute or a month they treat them at 60% long term treatment and 40% short term treatment.
#3 Greg from Connecticut
Greg writes, “My friend is about to "sell the farm" to buy the mansion on Tenet Healthcare (THC). Any words of advice? Is the stock ready to emerge from the shadows of its Medicare fraud scandal?
Pete Najarian tells Greg to forget about Tenet. He recommends UnitedHealthcare (UNH) or Wellpoint (WLP).