In the wake of the Greece bailout, investors are raising concerns about the future of the EU.
Although many investors expected a relief rally to buoy the euro in the wake of the Greece rescue – a rally never materialized. In fact, the euro actually traded sharply lower on Monday.
The negative sentiment stemmed from a growing fear that other euro zone countries were vulnerable to the same woes vexing Greece.
Of particular concern were Portugal and Spain, says David Reidel Of Reidel Research. As you may remember, in late April S&P downgraded the debt of both nations.
Reidel doesn’t expect the Greece debt crisis to be the catalyst that causes the EU to crumble, but he does have serious concerns about Portugal and Spain.
”Watch for someone to be let go,” he says. “It might be Portugal that’s just big enough to fail.”
What’s the trade?
I’d go longTelefonica , says emerging markets trader Tim Seymour. It’s a defensive play. People need telephone service.
I’d shortTrina Solar, says Brian Kelly, on the belief that European nations cut subsidies to solar.
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Trader disclosure: On May 3, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (GS) Call Spreads; Najarian Owns (RIMM) Call Spreads; Najarian Owns (TEX) Call Spreads; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (JPM), Is Short (JPM) Calls; Najarian Owns (BAC), Is Short (BAC) Calls; Najarian Owns (C), Is Short (C) Calls; Najarian Owns (WFC), Is Short (WFC) Calls; Najarian Owns (AAPL), Is Short (AAPL) Calls; Najarian Owns (MMR) Call Spreads; Najarian Owns (AMZN) Call Spread; Najarian Owns (AKAM) Call Spread; Najarian Owns (CAT); Najarian Owns (C) Calls; Najarian Owns (CLF) Call Spread; Najarian Owns (F) Calls; Najarian Owns (MMR) Call Spread; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (NSC) Calls; Najarian Owns (NRG) Calls; Najarian Owns (PFE); Najarian Owns (SOA) Call Spread; Najarian Owns (TEX) Call Spread; Najarian Owns (YHOO) Call Spread; Seymour Owns (F), (BAC), (MPEL), (DRYS);(AAPL), (MSFT); Karabell Owns (GS), (C), (AAPL), (VALE), (RIMM); Grasso Owns (NDAQ), (DYN), (LPX), (ASTM), (ABK), (BAC), (BGP), (C), (CVGI), (JPM), (NEM), (PRST), (PFE), (BA), (T), (CSCO), (X)Kelly Owns (FXE) Puts; Kelly Owns (FXB) Puts; Finerman's Firm Is Short (IYR), (MDY), (SPY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Fim Owns (BAC), (BAC) Calls; Finerman Owns (BAC), (BAC) Preferred; Finerman Owns (GOOG); Finemran's Firm And Finerman Own (JPM); Finerman's Firm Owns (MCD); Finerman's Firm And Finerman Own (RIG), (RIG) Calls; Finerman's Firm Is Short (USO); Finerman Owns (WFC) Preferred; Finerman's Firm Owns (PLCM); Terranova Owns (SWN), (XCO), (HES), (AXP), (TER); Terranova Is Short (CMA); Terranova Owns (PFE) May Calls; Terranova Owns (C) May Calls; Terranova Is Long June Gold 2010 Futures; Cortes Is Long U.S. Dollar; Cortes Is Short Crude Oil; Cortes Is Short (IWM) On Spread vs. Long (SPY)
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For Tim Seymour
Seygem Asset Management Is Short (CLF)
Seygem Asset Management Is Short (VALE)
Seygem Asset Management Owned (PBR) On 4/1/10
Seygem Asset Management Is Short (PBR)
Seygem Asset Management Owns (POT)
Seygem Asset Management Is Short (VALE)
Seygem Asset Management Is Short (X)
Seygem Asset Management Is Short (FCX)
For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (DRYS)
For Steve Grasso
Stuart Frankel And Its Partners Own (AMR)
Stuart Frankel And Its Partners Own (BAX)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (CUBA)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (GERN)
Stuart Frankel And Its Partners Own (HSPO)
Stuart Frankel And Its Partners Own (MERC)
Stuart Frankel And Its Partners Own (NWS.A)
Stuart Frankel And Its Partners Own (NYX)
Stuart Frankel And Its Partners Own (PALM)
Stuart Frankel And Its Partners Own (PDE)
Stuart Frankel And Its Partners Own (PFE)
Stuart Frankel And Its Partners Own (PRST)
Stuart Frankel And Its Partners Own (RDC)
Stuart Frankel And Its Partners Own (TLM)
Stuart Frankel And Its Partners Own (XRX)
Stuart Frankel And Its Partners Own (SDS)
Stuart Frankel And Its Partners Are Short (QQQQ)
Stuart Frankel And Its Partners Are Short (CL)
Stuart Frankel And Its Partners Are Short (AAPL)
For Brian Kelly
Kanundrum Capital Owns (GLD)
Kanundrum Capital Owns (AUY)
Kanundrum Capital Owns (GFI)
Kanundrum Capital Owns (TLT)
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short (AA)
Kanundrum Capital Is Short (ACH)
Kanundrum Capital Is Short (FXI)
Kanundrum Capital Is Short (USO)
Kanundrum Capital Is Short (HES)
Kanundrum Capital Is Short (XOM)
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Swiss Franc
Kanundrum Capital Is Short British Pound
For Anthony Scaramucci
Scaramucci Owns (GS), Skybridge Owns (GS)
Scaramucci Owned (PFE), Skybridge Owned (PFE) On 4/29/10
For Hamzah Mazari
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