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Fast At The Half – Monday April 13th

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FAST AT THE HALF

Stocks traded lower around lunchtime on Monday as energy shares retreated on falling oil prices and Boeing dragged down the Dow after it issued a profit warning, giving investors jitters ahead of key earnings reports this week.

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BANK ON THE BANKS?

The financials , however, looked more bullish after preliminary results from Wells Fargo buoyed investor confidence with Citigroup among the biggest winners in the sector.

A lot of investors say financials can’t continue to rally but I think they can, muses Guy Adami. I like the financials and the S&P to 900.

I’m also quite bullish on the banks, adds strategic investor Dennis Gartman, author of The Gartman Letter. Considering the curve is positively sloped banks should make a lot of money in this environment.

I’ve been a big buyer of Goldman into earnings, but I’m concerned about dilution, counters Jon Najarian. (There's speculation that Goldman could issue a secondary to pay back TARP money more quickly.)

If Goldman prices a secondary to pay back the TARP, I’d buy them on the dip, adds Guy Adami.

(If you’re looking for an options trade, Najarian says buy the 130 Goldman puts and sell the 125 Goldman puts.)

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OIL BREAKS BELOW $50

Oil fell toward $49 a barrel on Monday after the International Energy Agency cut its forecast for oil demand. The move offset the impact of data which showed China’s crude imports rose to their second highest level, ever.

I’m a little concerned about the oil trade because the contango is getting wider and wider, says Dennis Gartman. That’s an indication that there’s more than enough supply out there.

I think oil put in a top last week when it hit $53, adds Guy Adami.

The pull back in energy on Monday is probably an opportunity, counters Carter Worth. But be selective. I’d be longSchlumberger and Halliburton .

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TRADING IN THE WAKE OF GM

Shares of General Motors plunged on Monday after a newspaper reported the U.S. Treasury Department is directing the troubled automaker to prepare for a bankruptcy filing by June 1. That development comes just days after its new CEO insisted GM could reorganize outside the court.

Forget the US auto industry, says Tim Seymour. The emerging markets are starting to drive the global auto trade. India, Brazil and China have all seen huge moves higher in auto sales. I’m excited about names like Tata Motors as well as Toyota and Ford because they all have big exposure to EM.

And remember, if GM goes bankrupt the stock goes to zero, reminds Guy Adami. You can trade it, but that's important to know. If you want a trade that's probably safer, I think you could buy BorgWarner on the dip.

For more trades, including the Fast & Furious trades please watch the video above!

And don't forget to catch Fast Money; at 5pm ET on CNBC-TV or anytime on CNBC.com.


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