On Tuesday investors were trying to make sense of the broad market moves after the Nasdaq closed higher for its sixth straight day, helped by strength in Netflix, while the Dow and the S&P 500 ended five-day winning streaks that marked the best week for equities in two years.
Looking at the moves, Fast trader Tim Seymour was largely impressed that the market didn't sell-off more. “Considering last week was the best week in 2 years, the market did very well,” he says.
Also, the Street was very focused on the light volume which some investors took as a sign that the market could encounter more choppy trading.
However, trader Pete Najarian sees the light volume a little differently. He thinks the light volume in the stock market could be a signal that more pros are trading options. “On average 16 million options contracts traded per day last week and 20 million option contracts traded on Tuesday. People are simply moving out of equities!”
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OIL
The Fast gang was also closely watching the action in crude, which rallied again on Tuesday on reports of tighter supplies.
What’s the trade?
Pete Najarian has spotted unusual options action in Nexen and Western and suggests putting both names on your radar. “As long as oil stays north of $90 these names should perform,” he says.
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AGS
The Fast traders were also closely watching the action in corn and wheat after supply concerns again came back into the market.
What’s the trade?
Trader Brian Kelly is long-term bullish. “Inventories are still at 30-year lows,” he says. “I’d play it long fertilzers such as Potash, IPI and the Andersons .”
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