×

Steve Grasso: Sectors of Strength in July

If you watch Fast Money regularly you know that trader Steve Grasso has been saying that June would be a problem for markets.

Back in May he brought is this chart that showed bulls did not have history on their side.

Year June Move in the S&P 500
2010: -5.4%
2009: Flat
2008: -8.6%
2007: -1.8%
Source: Steve Grasso, Stuart Frankel

Well, we're halfway through June and now it's time to think of July.

And according to Grasso historically July is much better for bulls. In fact he brought another chart that shows the July performance of the best sectors over the past 4 years.

Take a look:

July Performance Over Last 4 Years
Homebuilders (XHB) +5.3%
Industrials (XLI) +5.2%
Financials (XLF) +3.3%
Consumer Staples (XLP) +3.0%
Consumer Discretionary (XLY) +2.9%
Source: Steve Grasso, Stuart Frankel

According to Grasso, the way to trade is to put take a hard look at the most beaten down sectors which are Homebuilders and Industrials. “These are not safe bets,” he adds but the historical data suggests these could be good plays.





______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On June 15, 2011, 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); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Grasso Owns (AKS); Grasso Owns (AMD); Grasso Owns (ASTM); Grasso Owns (BA); Grasso Owns (BAC); Grasso Owns (C); Grasso Owns (D); Grasso Owns (HOV); Grasso Owns (JPM); Grasso Owns (LIT); Grasso Owns (LPX); Grasso Owns (MHY); Grasso Owns (NDAQ); Grasso Owns (PFE); Grasso Owns (PRST); Stutland Owns (BAC); Stutland Owns (GS) Bonds; Stutland Owns (GM); Stutland Owns (GOOG) Bull Option Spread; Stutland Owns (MSFT) Bonds; Stutland Owns (WMT), Is Short (WMT) Calls; Stutland Owns Silver Bear Option Spread; Stutland Owns (GLD); Finerman Owns (MSFT); Finerman Owns (BAC); Finerman Owns (AAPL)

For Brian Stutland
Stutland's Firm Is A Market Maker In (WMT) Futures And Options Holding Positions
Stutland's Firm Is A Market Maker Holding Positions In VIX Futures And Options And VXX Stock And Options

For Steve Grasso
Stuart Frankel & Its Partners Own (ABX)
Stuart Frankel & Its Partners Own (CSCO)
Stuart Frankel & Its Partners Own (CUBA)
Stuart Frankel & Its Partners Own (GERN)
Stuart Frankel & Its Partners Own (HPQ)
Stuart Frankel & Its Partners Own (HSPO)
Stuart Frankel & Its Partners Own (MU)
Stuart Frankel & Its Partners Own (MSFT)
Stuart Frankel & Its Partners Own (NYX)
Stuart Frankel & Its Partners Own (PFE)
Stuart Frankel & Its Partners Own (PFST)
Stuart Frankel & Its Partners Own (SDS)
Stuart Frankel & Its Partners Own (UAL)
Stuart Frankel & Its Partners Own (XRX)
Stuart Frankel & Its Partners Are Short (QQQQ)
Stuart Frankel & Its Partners Are Short (AAPL)

For Karen Finerman
Finerman's Firm Is Short (IWM)
Finerman's Firm Is Short (MDY)
Finerman's Firm Is Short (SPY)
Finerman's Firm Is Long S&P 500 Puts
Finerman's Firm Is Long Russell 2000 Puts
Finerman's Firm Owns (AAPL)
Finerman's Firm Owns (BAC) Leaps
Finerman's Firm Owns (MSFT)
Finerman's Firm Owns (WMT)

For Brian Kelly
Accounts Managed By Brian Kelly Capital Are Long U.S. Dollar
Accounts Managed By Brian Kelly Capital Own (GLD)
Accounts Managed By Brian Kelly Capital Own (SLV)
Accounts Managed By Brian Kelly Capital Own (USO) Puts
Accounts Managed By Brian Kelly Capital Own (IWM) Puts
Accounts Managed By Brian Kelly Capital Are Short (SPY)
Accounts Managed By Brian Kelly Capital Are Short (JJC)
Accounts Managed By Brian Kelly Capital Are Short (EWJ)
Accounts Managed By Brian Kelly Capital Are Short Euro
Accounts Managed By Brian Kelly Capital Are Short Yen
Accounts Managed By Brian Kelly Capital Are Short Pound
Accounts Managed By Brian Kelly Capital Are Short Australian Dollar

CNBC.com with wires.