Home Stretch Of Terrible Year

So far the only thing we can say about 2008 is good-bye and good riddance. Just look at the performance of the major market indexes.

DJIA - down 35% ytd
S&P 500 - down 40% ytd
Nasdaq – down 43% ytd

Want some more superlatives? Investors pulled a whopping 72.2 billion from stock funds in October and credit-relates losses at financial companies worldwide are approaching $1 trillion.

Let’s just pack it in and try again in 2009! What??? Not so fast, you say?

Like Yogi Berra said, “It’s not over ‘til it’s over.“ With an entire month left to play maybe this is a good time to get back in the game.

Well, at least that's how optionMonster Jon Najarian sees it.

He told us that he expects the market to trade higher through the end of the year, “but I think it stays in a range between 8,000 and 10,000.”

As a result he has some trades – but make no mistake they are trades not long term buys.


The first trade is the homebuilders. Najarian says new uses of TARP funds to buy up to $500 billion dollars worth of mortgage securities backed by Fannie Mae and Freddie Mac should stimulate home buying. Already shares are starting to climb. “I like Centex and Ryland for unusual volume in options contracts,” he says.


Najarian tells us that, “institutional money is flowing into the gold miners.” He particularly likes Yamana because the stock is down 70%, much more than the commodity itself.

Shorting Opportunities

Because Najarian expects the Dow to remain range bound he also says, there will be shorting opportunities. “When the market gets up around 9400 I think that’s a great opportunity to sell short.”

What do you think? Tell us now!

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Trader disclosure: On Nov. 26, 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), (NUE), (MSFT); Macke Owns (UUP), (MSFT), (WMT), (GM); Macke Is Short (TM); Finerman's Firm Owns (DSX), (RIG), (MSFT); Finerman's Firm Is Short (IYR), (MDY), (IWM), (SPY), (GNK), (EXM), (BBT), (COF), (USO); Terranova Owns (DIS), (XOM), (GIS)

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

GE Is The Parent Company Of CNBC

Jon Najarian Has Call Option Positions In (RYL), (CTX), (AUY); Jon Najarian Owns (CVA)