With all three major averages down, the traders on
CNBC's "Fast Money" opened the show speaking about financial stocks' problems today.
Dylan Ratigan said that shares of
Goldman Sachs (GS) were on their way down due to downgrades across the board.
Also down today was
JPMorgan Chase (JPM), due to a $1.5 billion writedown.
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Joe Terranova said Goldman being down offers a "great opportunity." He said that although short interest has risen, he still believes "the broader market is moving higher."
Next, Jeff Macke said "it is too early to buy
Goldman Sachs now," and that it has technically broken its 50-day moving average.
Jon Najarian said he likes JPMorgan and agrees that GS is "best-in-breed."
Peter Najarian said to take a look at
Morgan Stanley (MS). He said that he likes what they're doing there and that if the shares get to $40, it would be a "great buy."
Macke concluded the discussion by saying "this is why we wait," and emphasized how important discipline is in trading the markets.
Moving onto energy, Terranova said to watch oil as it nears the $110-a-barrel mark. He noted that the 100-day moving average is just below $110.
Jon Najarian said to keep an eye on it because he believes once we get near the "critical levels," we'll see people get into it.
Ratigan said gold was dropping again and trading lower due to the dollar's strength.
Macke said the traders in gold were "all emotional," and that "if you got in early in gold, you're getting the shaft now."
Jon Najarian said that now you want to own those puts, and that it is wise not to get into these commodities.
Terranova summed up the mood by saying he "wouldn't touch it."
Speaking on airlines, Peter Najarian said that as oil drops there is an upside for the airline names. He said "looking at oil dropping to 110 bodes well
for the airlines."
Macke replied airlines engaged in fuel hedging may have problems. Many airlines who had not become involved in hedging originally may have hedged at $125 or $135 levels, Macke said.
Jon Najarian said that "hedging isn't helping them now," and that oil is coming down.
Discussing options and rails, the traders moved on. Peter Najarian said that it is wise to "keep an eye on these things," and that
Union Pacific (UNP) has "started to exceed open interest." He said that the rails are breaking down and that this is a part of the commodities unraveling.
The show's first guest, Dennis Gartman of the Gartman Letter, discussed commodities plays. He started off saying that the "dollar is getting stronger," and that the game has now been changed. Gartman said that the dollar has broken every trendline in favor of the euro and that "the psychology has changed dramatically." He continued, saying that the hedgers are on the wrong side and that investors "should be a seller of gold." The trade that Gartman finds compelling is wheat; he would be a buyer.
Shifting the conversation to pharmaceuticals, Ratigan said that although many investors have moved their investments into the safety of drug names, they have not been performing.
CEO John Lechleiter of
Eli Lilly (LLY) spoke ti tge crew and said the Amex Pharmaceutical Index has outperformed the
S&P 500.
Lechleiter continued saying that his firm has seen "21% sales growth," and that there is further growth in the future. He said there are several important dates coming up for LLY, and regarding its pipelines, if it were looking to acquire, the company would be interested in smaller acquisitions that would "bring innovation."
Looking into technology stocks, Peter Najarian said that
Nvidia (NVDA) has been talking about its solar business. He said that solar is going to become a big part of their business.
Moving onto
Apple (AAPL), which was moving up 2.3%, Jon Najarian said that
Lehman Brothers (LEH) is saying AAPL may be conservative in its recent estimates of sales.
Speaking on
Fluor (FLR), Macke said that earnings are all expectations and to "keep your eye on FLR into the close."
Wrapping up on oil, Terranova said to watch out for the crude oil inventory numbers and that it is "near the bottom."
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