JJ Kinahan reminds the desk that good traders never fade the trend. “I wouldn’t necessarily get in at these levels but I wouldn’t sell either,” he says.
Karen Finerman just can’t get behind the precious metals trade at all, especially gold. “I’d don’t get it,” she says. ”It’s like religion you either believe or you don’t. And in gold, I don’t believe.”
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AMERICAN SUPERCONDUCTOR
The traders were closely watching the action in American Superconductor which slipped as much 42% in extended trade.
According to OptionMonster Jon Najarian, the decline was tethered to reprots that China-based Sinovel Wind Group had refused to accept contracted shipments from American Superconductor.
To make the situation all the more precarious, Sinovel is by far the company's largest client and, according to Reuters, accounts for about 75 percent of the revenue generated by American Superconductor.
If the sharp sell-off has piqued your interest, Karen Finerman says stay away. “It’s not even like trying to catch a falling knife, it’s an avalanche.”
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TOPPING THE TAPE: TECH BUCKING TAPE ON DEALMAKING FEVER
Chip stocks landed in the spotlight on Tuesday after Texas Instruments dropped $6.5 billion or $25/ share for National Semi.
How should you trade the chip stocks now?
Brian Kelly reminds the desk that he’s short the SMH. "But if it breaks above $35.10 I’ll get out," he says.
Joe Terranova is cautious of the entire technology sector over the next few months. "I believe in the tech story," he says, "but in 2011 I think gains come from August into the end of the year." If you want to play the space sooner, he also says, "Take a second look after we hear earnings from the sector later in the month."
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NASDAQ REBALANCE
Also in tech, Nasdaq announced plans to rebalance the Nasdaq 100. Once the rebalancing is effective on May 2, the projected weight of some tech titans will change considerably.
Take a look:
NASDAQ 100 KEY SHIFTS
Current Projected
Apple 20.49% 12.33%
Google 4.2% 5.8%
Intel 1.75% 4.20%
Microsoft 3.4% 8.3%
Oracle 3.3% 6.7%
What’s the trade?
Joe Terranova is cautious of Apple but not because of the rebalance. He says price action has been concerning recently with the stock making a series of lower highs. "I’m holding puts," he reveals.
Brian Kelly thinks the sell-off in Apple will present a buying opportunity at some point, "but for the next 30 days the structural change will generate forced selling," he says.
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TICK BY TICK: BOEING
The traders put Boeing on the radar after the stock sunk, then rebounded just minutes into the close.
What’s the trade?
Brian Kelly tells the desk he’s not in the trade, but if anything he’d want to be short. He says there’s too much uncertainty after recent events involving Southwest.
Guy Adami reminds that desk Boeing has had trouble around $75.
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Trader disclosure: On April 5, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Finerman and Finerman's Firm own (AAPL); Finerman and Finerman's Firm own (CVS); Finerman's Firm owns (HPQ); Finerman and Finerman's Firm own (MSFT); Finerman owns (USO); Finerman's firm owns (IWM); Finerman's firm owns (SPY); Finerman's firm owns (MDY; Kinahan Owns (WAG); Kinahan owns (CSCO); Kinahan owns (F), is short (F) calls; Kinahan owns (MOS), is short (MOS) calls; Kinahan owns (ORCL); Kinahan is short (SPY) through options; Kinahan is long (XLB) puts; Kinahan is short (YHOO) puts; Adami owns (AGU); Adami owns (C ); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Terranova owns (C); Terranova owns (VRTS); Terranova owns (JPM); Terranova owns (UPL); Terranova owns (PBR); Terranova owns (TCK); Terranova owns (BAX); Terranova owns (XOM); Terranova owns (AKAM); Terranova owns (CVI); Terranova owns (CNQ); Terranova is long (NFLX) puts; Terranova is long (POT) puts; Terranova is long (F) puts; Terranova is long (VLO) puts; Terranova is long (CAT) puts
Brian Kelly
Accounts Managed by Kanundrum Capital are long (GLD)
Accounts Managed by Kanundrum Capital are long (MON)
Accounts Managed by Kanundrum Capital are long (SLV)
Accounts Managed by Kanundrum Capital are short (XLF)
Accounts Managed by Kanundrum Capital are long euro
Accounts Managed by Kanundrum Capital are short yen
Accounts Managed by Kanundrum Capital are long gold
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Accounts Managed By Kanundrum Capital Own (TSN)
For Joe Terranova”
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
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Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
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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 (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & IRL PLC
Terranova owned (JNPR) on 3/30/11
For Anthony Scaramucci
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