Instant Insights with the Fast Money traders
Jon Najarian is impressed by all the deal-making. “A lot of folks who thought the market was overextended are now saying if smart guys are stepping in a committing billions, it’s a positive sign. I take it as one more reason not to fight this tape.”
Although Brian Kelly has been bearish, he says “you just can’t fight this market.” In fact, he’s hearing a lot of investors are throwing in the towel on the short side. “A lot of money is being put to work and there’s probably value in the market if you believe the economy is getting better,” he says.
Yes, he's been looking for a correction too, but Guy Adami admits that he wouldn't fight the tape. "The market doesn't typically give investors this long to sell the highs," he says. "It probably means we go higher."
Tim Seymour thinks the market action may be a positive sign for blue chips. GE , Pfizer , Exxon , Alcoa, Chevron, DuPont, Caterpillar and Disney are all at or near their 52-week highs. “I think big cap should continue to work if you believe the economy will continue to work,” he says.
Steve Grasso feels the riots in Egypt were a bullish ‘tell’ because events could have been a much more negative for stocks than they were. “Egypt showed us point blank what the support is in the market. And its 1275.” In other words, despite the negative catalyst stocks didn’t slip lower than 1273 and Grasso thinks that makes investors more confident.
Zach Karabell thinks recent strength in the market should be put in context. “The strength comes off a decade that has been a big fat zero. I think we could still have a significant move higher but remain in the context of a very middling period of time.”
IS THE OIL TRADE OVER?
With oil closing lower for the third straight session, how should you trade oil?
Dennis Gartman suggests watching the contango in oil which, he says “has been widening everyday for weeks. It’s saying there’s more than enough oil above ground."
He also suggests keeping an eye on geo-political concerns. "Now that Egypt has moved to page 7 from page 1 it’s no surprise that crude comes down."
So what's next? When asked if he had to choose between $75 and $100 as oil's next stop he replies "that crude will probably print $75 before it prints $100."
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