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Trading Health Care In The Wake Of Obama's Speech

President Obama will attempt to reshape the bitter debate about health care reform with a high-stakes speech before a joint session of Congress.

The President has promised to provide Americans with "a much more detailed plan" about his vision for overhauling the $2.5 trillion U.S. healthcare system.

How will you know if the speech was a success?

Some commentators will instantly deem the speech a success or failure, depending on whether or not Obama offers specifics and spells out how the plan will be financed, or whether his remarks electrify his listeners.

But the true test of the speech will come over time. Analysts said one indication will be whether poll numbers show increased support for healthcare reform, and for Obama himself.

Another will be whether legislators receive more word from constituents supporting healthcare reform.

The final indication, analysts say, will be whether a meaningful reform plan passes Congress. The White House has said it wants a healthcare overhaul this year.

What’s the trade?

Widely followed billionaire investor Jim Chanos tells CNBC investors should consider shorting the space. “Our view on the healthcare sector is that it's facing headwinds. Whether there is a legislative answer or not, we think it faces competitive and regulatory problems in terms of profits margins as an industry."

“I agree that the opportunity might be on the short side,” adds Joe Terranova.

"I've been watching UNH but I'd get out," says Guy Adami. "Right now there's just too much uncertainty.


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Trader disclosure: On Sept. 9th, 2009, 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), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Owns (WFT), (SU); Terranova Owns December Gold Futures; Terranova Is Short Dec. Copper Futures; Terranova Owns Oil Futures; Terranova Is Short (CCL); Terranova Works For (VRTS); Najarian Owns (AAPL) & Short (AAPL) Calls; Najarian Owns (BAC) & Short (BAC) Calls; Najarian Owns (C) Calls; Najarian Owns (INTC) & Short (INTC) Calls; Najarian Owns (DFS) Calls; Najarian Owns (FCX), Owns (FCX) Put, Is Short (FCX) Calls; Najarian Owns (JPM) & Is Short (JPM) Calls; Najarian Owns (JOYG) & Short (JOYG) Calls; Najarian Owns (MS) And Is Short (MS) Call; Najarian Owns (MSFT) And Is Short (MSFT) Call; Najarian Owns (PALM) Calls; Najarian Owns (TEVA); Najarian Owns (V) & Short (V) Calls; Najarian Owns (WFC) Put Spread; Najarian Owns (YHOO) Calls; Seymour Owns (AAPL), (BAC), (DIS), (EEM), (FXI), (RIG); Seymour's Firm is Short (GFI)

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