Strategy Session with the Fast Money traders
It seems to me that a lot of fear entered the marketplace this week but I’m not sure the fear is justified, says Joe Terranova. I would not make any changes to the portfolio just yet. We’re currently trading between 1070 and 1110 - that's a consolidation range.
I think we’re looking at a mutual fund Monday, adds Pete Najarian. That’s a Monday when mutual fund money flows into the market and it generate bullish momentum.
TRADE OF THE WEEK: GOLD
U.S. gold futures ended higher for a sixth straight session on Friday despite a dollar rise. The late session gold rally in the face of a stronger dollar could boost sentiment early next week, pundits say.
What’s the trade?
I’m perplexed, says Karen Finerman. I wouldn’t get in here. Once I get into gold that’s the top, she chuckles.
I’m watching aggressive sellers come into this trade and attempt to drive the market lower, says Joe Terranova. But it’s not working. But to make me bullish, I’d need to see a blow-off top.
I don’t think it’s that speculative, counters Steve Grasso. It feels to me like gold is going higher as central banks attempt to hedge their dollar positions.
MARKET BUZZKILL: DELL DRAGS TECH INTO THE DUMPS
Dell dragged down the tech sector after the company reported a 54 percent slide in quarterly profit and sales that missed estimates.
The data rounded off a rocky week for the technology sector, including a major downgrade of the semiconductor space by BofA - Merrill.
What’s the tech trade?
There are catalysts out there and if investors decide that Dell deserves that same P/E ratio as rival Hewlett Packard then I can see it trading higher, speculates Pete Najarian.
If you want to play the space, I’d do it directly with H-P , says Karen Finerman.
I’m watching Google , says Joe Terranova. It looks positioned to go north of $600 by the end of the year.
INVESTORS SEEKING SAFETY IN GOVT. DEBT
Short-dated U.S. Treasuries rallied on Friday, sending two-year yields to 11-month lows, as investors sought the safety of government bonds on fears that this year's stock market recovery had finally come to end.
What must you know?
I think this is a duck and cover trade, says Steve Grasso. Money managers are taking profits and they have to do something with the funds so they put it in Treasurys.
THE OPRAH TRADE
Oprah Winfrey said on Friday that she will end her popular TV show in 2011 because it "feels right in her bones" after 25 years, and urged viewers not to believe rumors of why she's quitting.
Winfrey, 55, did not divulge her future plans.
What’s the trade?
The speculation is that Oprah is leaving her show to work on OWN – the Oprah Winfrey Network, explains Steve Grasso, and that’s a collaboration with Discovery .
In the media space, I’m watching DirecTV , adds Joe Terranova. I think it could be a takeover target.
TOPPING THE TAPE: WAL-MART FLEXING ITS MUSCLES
With only days to go until Black Friday, the Retail ETF closed lower. How should you game retail into the all important holiday season?
Find out what insights Jon Najarian has gleaned from the options world. Watch the video now.