How should you trade?
There’s a record net short position in the euro, reveals veteran trader Gary Kaminksy. It’s a very crowded trade right now. Personally, I think there’s a hedge fund cartel being established on the other side of the trade to create this tug of war. But long-term I believe the euro goes lower. And I continue to be short Europe with a long position in the EPV.
Short euro is a dangerous trade, says Dennis Gartman. There is a huge short interest. However, if you are short I would not be panicked by Friday's rally. It’s short covering at the end of the month and it's to be expected.
If you’re looking for a trade, I’d look at playing three currency ETFs, says Joe Terranova. They are FXA , FXC ,and FXF.
With a snow storm blanketing NYC I think investors traded on Thursday as if it was their end of the week and end of month, muses Pete Najarian. Considering the market is so quiet I’m more focussed on next week. I think we could see the market rally on Monday because of the mutual fund Money phenomenon.
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EAR TO THE WALL: JDS UNIPHASE
Shares of JDS Uniphase moved sharply higher on Friday, but the real action was in the options pit. Nearly 11,000 contracts of the March 11-strike calls traded hands.
What must you know?
It's run already, but the options action suggests to me the stock could go even higher, says Pete Najarian.
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MARKET BUZZKILL: AIG LEADS FINANCIALS LOWER
Say what you want about Treasury Secretary Tim Geithner, but don’t say he’s a stock picker.
A couple weeks back in written congressional testimony, Geithner said, the situation at AIG was 'substantially better' with AIG’s insurance subsidiaries generating positive returns."
Fast forward to Friday when AIG posted an $8.9 billion-dollar loss and said it may need more taxpayer money.
What must you know?
I’m shocked that the main stream media hasn’t focused more on this issue, says Gary Kaminksy. What happened to providing proper guidance? This is a disaster.
If you’re a retail investor looking at AIG, remember pro traders look at this stock as a trading vehicle only, says Pete Najarian, not as a long term investment.
Elsewhere in the financials, I’m a seller of the regional banks, says Joe Terranova. Or if you’re looking for a buy, look at Morgan Stanley.
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TRADE SCHOOL: BIG FUNDS GETTING FOCUSED IN FEBRUARY
Friday’s Halftime Report broadcast from the floor of the NYSE, the epicenter of the big money universe. Steve Grasso of Stuart Frankel works the floors each day following the money.
We asked him, 'what are large mutual funds doing as as we close up the last trading day of February?'
Funds are scaling back their positions, explains Grasso. And they’re focusing on best of breed. Right now that benefits JPMorgan , Apple and Deere.
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WORST WINTER TRADE
When it's cold - people heat their houses. That typically fuels demand for natural gas and gives some sort of bid to the commodity.
But a curious thing has happened. Despite the brutal winter, nat-gas has not gotten its seasonal bounce.
What must you know?
There’s a lot of nat gas in storage, says Dennis Gartman. And the industry has discovered new sources of nat gas. In other words with so much supply, I don't think this is good place to play.
If you want to play energy, I’d play it with oil , adds Joe Terranova.
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FAST EXCLUSIVE: OUTLOOK FROM NEW U.S. KING OF STEEL
Economic data is, of course, useful, but if you really want to know what's going on with the economy you need to take a good hard look at steel.
And who better to provide the latest insights than the boss of Nucor , Dan Dimicco.
What does demand reveal about global growth? And does Nucor have plans to make acquisitions? Watch the video and find out now!