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Barry Ritholtz: Strong Technicals In ‘This Undervalued Bank’ 

Top Internet columnist Barry Ritholtz, one of the “15 Most Important Economic Journalists” in the US, reveals his 3 favorite plays for 2011!

The Big Picture blogger tells us he’s picked names that aren’t always loved by the Street but that doesn’t mean you can’t make money. Here’s what he says should be on your radar.

CITIGROUP

Ritholtz likes the fundamental in Citi .

“I think CEO Vikram Pandit has a good handle on the company and finally they’re getting out from under the government,” he says during a live interview on CNBC's Fast Money.

However, it’s the technicals which Ritholtz loves. “The chart seems to be going from the lower left to the upper right. Of all the big banks this is the most undervalued and the best looking technically,” he says.

But if you follow him into this trade, you'd best be nimble - Ritholtz says it's not a stock to buy and hold.

”Sell the rips and buy the dips,” he counsels. “When it’s higher I sell it and when it’s lower I buy it. $4.60 is my entry point and I sell into big spikes.”

Symbol
Price
 
Change
%Change
SC0Y
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ARCH COAL

In the energy space, Ritholtz suggests long Arch Coal as a play on increased electricity demand. "Many people don’t know it but coal is the biggest source of electricity in the United States," he explains.

Of course there are a lot of coal stocks but Ritholtz suggests this one due to bullish technicals. After hitting resistance at $30 for quite some time the stock finally broke out.

”Any pull back toward the low 30’s, I’m a buyer,” he counsels.

Symbol
Price
 
Change
%Change
BASCX
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SUNCOR

Although we ran out of time on TV, ahead of the broadcast Ritholtz told our producers he expected Suncor to break $40 in 2011.




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Trader disclosure: On December 14th, 2010, 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); Adami's wife works at (MRK); Terranova Owns (UPL), (C), (PEP), (OXY), (GS), (NKE), (VRTS); Terranova Owns (GLD) puts; Weiss Owns (DVN), (COP), (HK), (QCOM), (VZ), (MEE), (SWC), (AKS), (NIHD), (TBT), (UUP), (JWN), (VRML), (NIHD); Weiss Owns (NFLX) puts

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