Be careful trying to game the stimulus. You might be looking for trades in all the wrong places?
That’s because the Obama stimulus might not be your best trade. Instead Tim Seymour and Joe Terranova both suggest keeping an eye on China.
In fact they say keep your eye on three things: China’s 8 percent economic growth target, its 4 trillion yuan ($586 billion) stimulus package, and the 10 industries revitalization plan.
Tim Seymour believes that Beijing has never before come up with such a sweeping package that includes detailed long-term goals for so many key industries. It could serve as a curtain raiser of future industrial policies, he speculates.
But that’s not all. China, is also scheduled to launch steel futures trading this week. On Friday, the Shanghai Futures Exchange will start formal trade of two construction steel products – two firms which could be big beneficiaries of its stimulus package.
Considering all that’s going on in China, what’s’ the trade?
Watch for the PMI numbers out of China at the end of the month, counsels Tim Seymour. And if they show China is growing I’d look at Aluminum Corp of China or PetroChina .
Of you could look at engineering stocks, adds Pete Najarian. And a great way to play them is with the FLM a global engineering and construction index fund.
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Trader disclosure: On Mar. 26th, 2009, 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 (AAPL), (POT), (WMT), (MOS), (GE); Seymour Owns (AAPL), (BAC), (FXI), (EEM), (POT), (TSO), (TCK); Finerman's Firm Owns (MSFT), (RIG), (MSFT); Finerman's Firm Is Short (IJR), (IWM), (MDY), (SPY), (USO), (BPO); Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Owns (WFC) Preferred; Najarian Owns (C) Call Spread; Najarian Owns (ASH) Call Spread; Najarian Owns (AAPL) Call Spread; Najarian Owns (BX) Call Spread; Najarian Owns (GD) Call Spread; Najarian Owns (MS) Call Spread; Najarian Owns (PALM) Calls; Najarian Owns (XHB) Call Spread; Najarian Owns (SWY) Calls; Najarian Owns (ASH) Calls
Terranova Owns (IBM)
