On a day like Friday it's easy to get carried away with the market's big move. Should you trade the momentum or focus on fundamentals?
I think the market is getting a little carried away, replies Karen Finerman on CNBC's "Closiong Bell". I have no idea where the market is going short term and I try not to focus on it.
Instead I ask myself what stocks are attractively priced with a balance sheet that can withstand some pain if we are in a recession. That’s what I focus on.
How are you trading?
You can take a look at the NYSE . I think it’s attractively priced on an EPS basis and they have good volume.
Another bet I like is Pzena Investment Management . It’s an asset management firm that’s run by Rich Pzena who I consider a very smart guy.
And if you want, consider Fannie Mae , but be in it in call options so you know exactly where your downside is.
On the other side, I think you can short Capital One . I expect more consumer pain to come in things like auto loans and credit cards.