Strategy Session with the Fast Money Traders
I think we’ve officially declared capitalism, dead, exclaims a cynical Jeff Macke. The government came out and said “we’re not going to let any banks fail.”
I didn’t find Citi's rescue that comforting either, adds Karen Finerman. Citigroup had to be bailedout. Aren’t they the proxy for our entire financial system? That doesn’t seem bullish to me.
I think the market rallied on Tuesday because it was deeply oversold, counters Joe Terranova. Nothing more.
Keep your eye on the FDIC program which helps banks issue debt, adds Tim Seymour. That’s getting off the ground and something to be positive about.
Hank Paulson is going to update America on the use of the TARP funds Tuesday at 10am, adds Dylan Ratigan.
I would be a seller of this rally, adds Jeff Macke. I’d get short the S&P 500 with a stop out at 865 on the close.
WILL BIG 3 NOW GET THEIR TASTE OF GOVT. FUNDS?
After Washington rushed to the aid of Citigroup, it’s widely believed that the Big 3 auto makers will make a hard play to get their piece of the pie.
However, Obama senior advisor David Axelrod recently warned automakers to devise a plan to retool and restructure that they can present to Congress next month. Otherwise, he said, "there is very little taxpayers can do to help them."
And at a recent news conference, the President-elect was critical of the Big Three automakers, saying he was surprised they did not have a better-thought-out plan for their future before asking Congress to approve $25 billion in emergency loans.
However, Obama also said once he sees a plan, he expects "we're going to be able to shape a rescue."
BIG THREE ANNUAL SALES
2000 Was The Record At 17.35 Million
2008 Estimated Sales Are 13.5 Million
According to the Wall Street Journal - Auto Execs Want It Back Up At 15 Million
The three automakers should not be determining how many cars should be sold. That should come from the consumers, says Karen Finerman.
They should build 8 million cars a year and bust the unions and they would be fine, exclaims Tim Seymour.
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Trader disclosure: On Nov.24, 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 (UUP), (WMT), (MSFT); Macke Is Short (TM); Seymour Owns (AAPL), (BAC), (ETFC), (F), (MER); Seygem Asset Management Owns (VIP); Finerman's Firm Owns (DNA) Calls; Finerman's Firm Owns (DSX), (MSFT), (XLF); Finerman's Firm Is Short (USO), (GNK), (EGLE), (BBT), (COF), (IYR), (IJR), (MDY), (SPY), (IWM), (RTH); Terranova Owns (DIS)
Charles Schwab Is A Sponsor Of "Fast Money"
Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)
Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (CLB), (DLR), (EPR), (EXR), (MAC), (SLB), (SKT), (UA), (IGE), (DBC), (DBV); Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights; Virtus Investment Partners Owns More Than 1% Of Shares Of Essex Property Trust Inc.; Virtus Investment Partners Owns More Than 1% Of Shares Of Corporate Office Properties Trust SBI MD
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