Fast Money series producer John Melloy wrote about this trend in depth in his blog “Behind The Money.”Click here to read more.---------------
TOPPING THE TAPE: PALM LEADS TECH HIGHER
As we told you above, investors appeared somewhat bullish on technology Friday after Palm posted a smaller than expected loss and its CEO said, “Such significant growth means there is room for three to five players to win in this space. We don't have to beat each other to prosper."
Palm’s stock surge has been unbelievable, says Pete Najarian. I like it. I think it could be a takeover target. Also, in the space I put a position on in Oracle , he reveals. I think it could go to $24.
I’d be careful of Oracle , counters Guy Adami. To me it looks a little toppy.
I’m bullish Nokia, reminds Tim Seymour.
I think the script has been written, adds Joe Terranova. I think technology is where investors should be for the rest of 2009. The chip sector has been amazingly resilient. And in the smartphone space I’m long RIMM.
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OIL CAN’T STAY ABOVE $70
U.S. crude oil futures fell back on Friday as oil traders took profits after new data showed a jump in the savings rate. Oil traders took the results to mean consumers are saving more and spending less – and as a result hampering the road to economic recovery.
The day's losses erased overnight gains spurred by supply disruptions in Nigeria and amid a weaker dollar.
What’s the trade?
It seems to me if oil can just stay around $70 the big integrated oil companies could still go higher, speculates Tim Seymour.
I would craft exposure to the energy equities such as Hess, Petrobras and Suncor, counsels Joe Terranova.
I happen to think oil is heading lower and as a result oil services names such as Schlumberger will also head lower, counters Guy Adami.
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GOLDMAN GETTING IT ON
Shares of Goldman Sachs have been running higher with the stock in striking distance of a new 2009 high? What’s the trade?
It seems FBR and others have a $160 price target on this stock, reminds Guy Adami. Although I think the stock is a buy for the long term but I would not initiate a new position at current levels.
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ETF FRIDAY...WORKING ETF'S INTO YOUR STRATEGY
As money comes off the sidelines it seems investors are putting a substantial chunk of it to work in ETFs. According to JP Morgan there are currently 2100 ETFs traded in the US and Europe worth approximately $900 billion.
The ETF Boom
-ETF Assets Up 16% In Past 18 Mos.
-ETF Assets Valued At Over $900 Bln. Worldwide -Over 2100 ETFs in the U.S. and Europe
-33% Of US Equity Trading Volume In Past Yr. From ETFs
Source: JPMorgan
If the concept of ETFs or exchange traded funds is unfamiliar here’s a two sentence explanation.
ETFs are designed to mimic an index that they track and are bought and sold throughout the day. Since ETFs are made up of a basket of stocks (or other securities) they should, in theory, spread out risk.
How should you work ETFs into your trading strategy?
We turned to a highly esteemed expert, Luciano Siracusano of WisdomTree Investment.
Although there's a multitude of ways to use ETFs right now he suggests using them to protect yourself from declining dollar. And he suggests playing the falling dollar by getting with the Brazil ETF and the South Africa ETF.
Joe Terranova has some ideas too. Curious?
Watch the video now!
