With BofA slipping below $6, how are the pros trading banks? Also how should you play media after the Goldman downgrades. Plus is Coke still the real thing?
Get all the details below!
FINANCIALS IN FREEFALL?
The financial freefall continued on Monday with Citi declining sharply and BofA plunging below $6 a share.
How should you trade banks?
“Financials are cheap,” says Guy Adami, “but that doesn’t mean they can’t go lower still.”
”I think short financials is a dangerous trade,” says Karen Finerman. “Any change in sentiment and these stocks could be spring loaded.”
”I wouldn’t play it short either,” says Joe Terranova. I’d put the best of breed names on my radar. JPMorgan, Wells, and PNC and hit the buy button down the road.
”The charts look broken,” counters JJ Kinahan. “I’m seeing aggressive put buying in the XLF . ”
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GOLDMAN DOWNGRADES ENTERTAINMENT
Entertainment flourished in the 1930’s. Shouldn’t media companies do better when the economy slows down?
Evidently, not in 2011.
Goldman Sachs lowered its outlook for entertainment stocks such as Time Warner and took Viacom off its Conviction buy list.
What’s the trade?
”Even with my view on the broader market I’m hard pressed to believe Cablevision has a lot more downside,” says Guy Adami.
”I wouldn’t go short, I’d let these stocks stabilize and then get in,” says Joe Terranova.
”I’d get into Disney right here,” adds Karen Finerman.
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IS COCA-COLA LOSING ITS FIZZ?
JPMorgan downgraded Coca-Cola to neutral Monday on concerns about foreign exchange dragging down earnings.
What’s the trade?
”I think it’s a pretty good call,” says Guy Adami. “If the S&P trades down to 1020 I can see Coke trading $60.”
”Growth has been dominated by emerging markets and I agree they may be in trouble,” adds Tim Seymour.
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Trader disclosure: On Oct 3, 2011, 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); Seymour owns (BAC); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Terranova is long LQD; Terranova is long MUB; Terranova is long VRTS; Terranova is long OXY; Terranova is long HOS; Terranova is long OIH; Terranova is long AXP; Terranova is long EMC; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM;
Finerman’s firm is short AAPL calls; Finerman owns AAPL; Finerman owns BAC; Finerman owns GOOG; Finerman’s firm owns JPM leaps; Finerman owns JPM; Finerman owns IWM; Finerman owns MDY; Finerman owns SPY
For Joe Terranova|
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
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Robert Mcadoo
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