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Head Back From the Hamptons

Think because it’s summertime the tradin’ will be easy? Think again! Prepare to be inundated with new information on the economy all week!

Housing

Housing will be a dominant theme again on Tuesday after existing home sales ticked modestly higher on Monday. Now all eyes are on the S&P Case-Shiller home price index and new home sales which comes out Tuesday.

“Case Shiller data for June is expected to show annual declines of 16.2% -- a new record,” MKM economist Mike Darda tells Fast Money. “The pace of home price declines may begin to moderate soon, but don’t expect prices to stop falling until we see much more significant reductions in inventories.”

Trade

Preliminary real GDP data on Thursday is expected to show second-quarter growth at an annual rate of 2.7 percent, compared with 1.9 percent in the first quarter.

“I think GDP for Q2 should be revised up closer to 3% given strong data on trade and inventories since the initial estimate,” Darda says. “However, with credit markets under intense strain, and leading economic indicators deteriorating, this number is likely to be more of a headfake: growth in the second half should be very weak if there is growth at all.”

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FOMC Minutes

And then there’s always the FOMC minutes which will be released on Tuesday.

“There shouldn’t be any big surprises in the August 5th Fed minutes, although the credit markets have gotten worse since then. The Fed is on hold,” Darda concludes.

Bottom Line: I’d be very cautious in the near term, says Darda. There’s a systemic problem that’s going to take an extended period of time to remedy.

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Trader disclosure: On Aug 25, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Pete Najarian Owns (CSCO) Call Spread, (RIMM) Call Spread, (TIE) Call Spread; Pete Najarian Owns (AAPL) And Is Short (AAPL) Calls; Pete Najarian Owns (XLF) And (XLF) Puts And Is Short (XLF) Calls; Pete Najarian Owns (LEH) Put Spread; Pete Najarian Owns (MS) And Is Short (MS) Calls; Jon Najarian Owns (AAPL), (C), (RMBS); Jon Najarian Owns (TIE) Calls; Jon Najarian Owns (BRCM) Call Spread; Jon Najarian Owns (LEH) Put Spreads, (STI) Put Spreads; Terranova Owns (YHOO), (AAPL), (RIMM), (SA), (VLO), (EOG), (NOV), (POT), (X), (KOL), (GS), (FCX); Terranova Owns (AIG) Puts

Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.; Phoenix Investment Partners Owns More Than 1% Of (ABD), (ARE), (BRE), (CNTY), (CLB), (OFC), (DLR), (ESS), (EXR), (FL), (IAT), (IGE), (LNET), (MAC), (OIIM), (PSPT), (DBC), (DBV), (SLB), (SKT), (BLV)

Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO; Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

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