The Dow and S&P 500 soared on Monday as investors bet the Washington's bailout of U.S. home finance companies Fannie Mae and Freddie Mac will stabilize the housing market and ease the credit crisis.
On Monday, Ford announced new plans to increase lobbying efforts in the hopes of getting more government loans and last month GM indicated it would do the same. Now speculation is growing that other major companies may follow suit.
How can you capitalize on the government’s next big move?
The Fast Money plays:
That makes me bearish on GM, says Karen Finerman. If they present a dire enough case that the government has to step in, that’s not good.
Personally I think the trade is Gap because they’ve improved the way in which they run their business, says Guy Adami. After this credit crisis is over strong retailers with solid business models should be well positioned.
Keep an eye on the airlines , adds Pete Najarian. At one point Monday morning United tock fell 76% amid rumors the company was filing for bankruptcy, after a 2002 report was mistakenly republished on the Florida Sun-Sentinel website. It just goes to show how jittery these stocks are to trade.
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Trader disclosure: On Sept 8, 2008, 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 (DIS), (WMT), (MSFT) Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MST), (NUE); Najarian Owns (NVO); Najarian Owns (AAPL) And (AAPL) Collar; Najarian Owns (LEH) Put Spread And (LEH) Call Spread; Najarian Owns (MER) Put Spread; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (NOK) And Is Short (NOK) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (XLF) And (XLF) Collar; Finerman Owns (GS); Finerman's Firm And Finerman Own (FLS); Finerman's Firm And Finerman Own (C) Leaps; Finerman's Firm Owns (HUN) Leaps; Finerman's Firm Owns (MO), (MSFT), (NOK), (SUN), (TSO), (VLO), (GE); Finerman's Firm Is Short (XLF), (IYR), (IJR), (MDY), (SPY), (IWM), (BAC), (COF); Finerman's Firm Is Short (BBT) And Owns (BBT) Puts
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