Gartman said he would be “demonstrably less long” gold and oil in the near future. If we’re headed for a recession, and Gartman thinks “we may already be in one,” both commodities are overextended.
THE INDUSTRIAL DEVOLUTION:
The headline: Industrial Stocks – the Best Friends of Global Growth – Take Major Hit Friday
Honeywell (HON) only missed estimates by a penny and raised its guidance – but the stock got trounced. Guy Adami thinks the market sold it off in sympathy with Caterpillar (CAT) and other industrial names that seriously underperformed. Honeywell around $55 is a buy, he said. THE INDUSTRIAL DEVOLUTION
TECH'S RECORD QUARTER
Schlumberger (SLB), the oil services giant, took a hit and will probably see more downside, Guy said, but he would still buy it.
TECH’S RECORD QUARTER:
The headline: After Blockbuster Week, Tech Stocks on Pace For Most Profitable Quarter Ever
SanDisk (SNDK) was down 15% Friday, but put it on the radar screen, Guy Adami advised. He thinks it hit a short-term bottom.
Pete Najarian agreed with the flash memory call. SNDK could easily be an acquisition target with the stock so low, he said. All the device makers are interested in flash memory and he thinks any of them would be natural buyers.
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Trader disclosure: On Oct 19, 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), (EMC), (INTC); Najarian Owns (C), (CY), (GOOG); Finerman Owns (GS); Finerman Owns PHLX Oil Service Sector Index Puts; Finernman's Firm Owns (ASD), (TGT), (MO), (BIIB), (MSFT), (WMT); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm And Finerman Own (HD)
Gartman Owns (SDS), (DXD), (YZC), (UNG), (SJT), (TOWN); CIBC Gartman Index Owns Crude Oil, Wheat, Corn, Soybeans; CIBC Gartman Index And Gartman Own Gold