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Andy Busch: 10% Market Pull Back In March

We've been bringing you the top trades for 2011 all this month; following are favorites from Andy Busch, global currency strategist at BMO.

Busch tells the desk the following:

1. Buy Swedish Krona, Sell Canadian Dollar

I love everything Swedish, he says. They have independent currency, independent monetary policy and they just experienced 6.9% GDP growth in the third quarter – and most important they don’t have to pay for any of the PIIGS.

And my view on Canada is that by mid-year there’s going to be serious inflation in China, causing Beijing to raise rates. In turn that will hurt Canada’s exports.

2. Sell 5 Yr-Note Ahead Of Unemployment Data

I believe we’re going to see stronger employment data, he says, and I’m a seller of the 5-year on expectations the Fed pulls back QE2 purchases due to job growth.

3. Mid-March Seller Mid-Caps

Almost every piece of stock research has been very bullish, he says. Typically that gets factored in – through mid-January. But by mid-March, I expect the move really fades. Also, there are a few bearish catalysts looming in the way of Europe’s financial woes resurfacing as well as a vote on raising the debt ceiling. Those catalysts could trigger a market pullback; as much as 10% - I'm a seller of the S&P 600.

Get all the details. Watch the video now!


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Trader disclosure: On December 21st, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL), (BAC), (F), (FXI); Adami owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Adami's wife works at (MRK); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman's firm is long S&P puts; Finerman's firm is long Russell 2000 puts; Finerman owns (AAPL); Finerman owns (BAC); Finerman owns (CVS); Finerman's firm owns (CVS); Finerman owns (GOOG); Finerman's firm owns (JPM) and (JPM) leaps; Finerman owns (JPM); Finerman owns (MSFT); Finerman's firm owns (MSFT); Finerman's firm owns (WBC); Pete Najarian owns (KRE) calls; Pete Najarian owns (YHOO); Pete Najarian owns (MSFT) call spreads; Pete Najarian owns (AKAM) call spreads; Pete Najarian owns (V) call spreads; Pete Najarian owns (WLT) call spreads; Pete Najarian owns (C); Pete Najarian owns (MS); Pete Najarian owns (NKE) call spreads; Pete Najarian owns (GE); Pete Najarian owns (F); Pete Najarian owns (BBY) calls; Pete Najarian owns (SMH) call spreads; Pete Najarian owns (M) call spreads; Pete Najarian owns (HK) calls; Pete Najarian owns (MRO); Pete Najarian owns (CNI)

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (BBT)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (JPM)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (WFC)
Accounts Managed By Kanundrum Capital Own (CLP)
Accounts Managed By Kanundrum Capital Own (IPI)
Accounts Managed By Kanundrum Capital Own (LYC.AU)
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (XLE)
Accounts Managed By Kanundrum Capital Own (OIH)
Accounts Managed By Kanundrum Capital Own USD
Accounts Managed By Kanundrum Capital Are Short The Euro
Accounts Managed By Kanundrum Capital Are Short The Yen

For Peter Boockvar
Peter Boockvar is long EWJ
Peter Boockvar is long crude
Peter Boockvar is long gold and (GLD)
Peter Boockvar is long (SLV)
Peter Boockvar is long (DBA)

For Carter Worth
No disclosures.

For Andy Busch
Busch has no disclosures.

For Ben Schachter SOT
Schachter has no disclosures.

For Scott Nations
Nations does not own (DE), but a member of his family does (mother).

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