Instant Insights with the Fast Money traders
Technology led the market higher due to the weaker dollar, explains Joe Terranova. If you look at the relationship between the dollar and the Nasdaq you can see that high point in the Nasdaq is directly related to the low point in the US dollar. But dollar weakness is probably over in the short-term.
As a result, if you were overweight tech from September to November, I’d scale down to market-weight or underweight, Terranova counsels, but I would not go short.
I would say the trade is longdollar, adds Steve Cortes.
But in addition to moves in the greenback, I think the sell-off in tech has everything to do with de-risking, he says. Money managers are taking profits in their trades that have done well. They’re not going to risk losses with the year ending in 5 weeks.
In tech, I’m one of those money mangers taking money off the table, reveals Patty Edwards. I’ve trimmed positions in Akamai and F5 – because these stocks have had significant runs and it’s sound discipline to take profits.
I don’t think we’re seeing a fundamental change in the tech story – rather tactical trades into year’s end. If you have a long-term time horizon, I think the sell-off is an opportunity. I’m a buyer of Qualcomm.
THE LOVE TRADES
The traders suggest keep a close on the love trades such as Apple and Google - trades that investors have been in love with -- because many are dollar oriented trades.
What's the take away?
I'm not sure I'd go short, says Tim Seymour, because I expect investors will be reluctant to short the US market when fundamentals look pretty good.
FedEx hasn't been a love trade but it might become one, says Guy Adami. I wouldn't be surpised if they comne out and raised guidance for the quarter.
SILVER & GOLD
The traders are also closely watching the action in silver and gold – as well as copper – all traded higher despite a stronger dollar.
What’s the trade?
My clients are still buying these names, says Steve Grasso, because they believe the names can still run while the market is all over the map.
It wouldn’t surprise me to see a rotation with investors taking profits in tech and putting money to work in the commodities space, says Joe Terranova. Personally I cashed out of IBM and put that money to work in Freeport McMoRan.
The latest Chinese manufacturing data to be released overnight will likely move markets.
Consensus expectations are for the November purchasing managers index (PMI), a key gauge of industrial activity, to edge up to 54.80 from October's 54.70.
What’s the takeaway?
It could be a lose – lose, speculates Guy Adami. If it’s too hot investors could take it to mean more tightening is coming and if it’s low investors could take it to mean trouble.
TWEET THE STREET GOOGLE-GROUPON DEAL
It appears the tweet de jour had everything to do with Google on Tuesday after European regulators said they were beginning an antitrust investigation into the Internet search giant.
What must you know?
Technicals don’t stack up that well, says Guy Adami. I think a lot of investors may be trapped in this one.
WIKILEAKS TO EMBARRASS WALL STREET?
Bank of America fell Tuesday afternoon on speculation that it might be the target of a WikiLeaks document released early next year.
In an interview published in the latest issue of Forbes magazine, the founder of the whistle-blower organization, Julian Assange, said he plans to release tons of internal documents from a major U.S. bank early next year. "It will give a true and representative insight into how banks behave at the executive level in a way that will stimulate investigations and reforms, I presume," he told Forbes. "For this, there's only one similar example. It's like the Enron e-mails."
While Assange wouldn't identify the bank to Forbes, he had said last year in a separate interview with Computerworld that he had several gigabytes of data from a Bank of America executive's hard drive.
A spokesman for Bank of America said in a statement: "We are unaware of any new claims by Wikileaks that pertain specifically to Bank of America."
He said that the bank was aware that Wikileaks claimed to have the computer hard drive of a Bank of America executive more than a year ago. "Aside from the claims themselves we have no evidence that supports this assertion," he said.
The Forbes story was published in the midst of a worldwide furor over a massive amount of classified diplomatic documents that WikiLeaks released on Sunday
What else must you know about these developments?
Find out from Barry Ritholtz of FusionIQ. Watch the video now!