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.
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.”
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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)