Fast Money Recap - Is This As Good As It Gets? (4/29/09)

Recap of the Fast Money TV program, Wednesday April 29

Is This As Good As It Gets? Materials SPDR (XLB), Goldman Sachs (GS), Wells Fargo (WFC), Shaw Group (SGR), McDermott (MDR), Fluor (FLR), IBM (IBM)

Many investors think the current gains are too good to be true, but the fundamentals seem to be on the side of the bulls, particularly with rising consumer spending and dropping inventories. Carter Worth commented:

"I expect the S&P to get stuck here, However that could ultimately be bullish because if another 3 to 4 weeks can elapse and the S&P holds its levels the smoothing mechanism will go flat. And if the smoothing mechanism goes flat Oppenheimer will make a bull market call."

Dennis Gartman urged investors not to fight the mood of the market and to buy "aluminum, copper and the kinds of things that if you drop on your foot, it will hurt." He recommended XLB.

Jeff Macke is skeptical but would buy financials and stick with them until they break their current uptrend because they have government backing. His picks include Goldman Sachs and Wells Fargo. Najarian says he is not sure where the market is headed, but even if it pulls back, he is a long term bull. He likes industrials McDermott, Fluor and Shaw. Tim Seymour is a skeptic and thinks oil services have a long way to go. Guy Adami is still picking stocks and says IBM is on fire and will stay on fire.

S&P 500 Rises

The S&P 500 reached its highest level since late January on increasingly bullish news about decreasing inventories and more consumer spending. Guy Adami and Jeff Macke suggest taking some profits. While Tim Seymour and Pete Najarian recommend caution, Najarian says the market is headed for higher lows and Seymour thinks the consistent beating of expectations by a large number of companies is a good sign.

Morgan Stanley (MS)

At Morgan Stanley's annual meeting, CEO John Mack discussed perhaps making a new acquisition but emphasized the Smith Barney deal which will give Morgan Stanley a significant stake. However, Jeff Macke says he's not excited about MS until it gets above $26, and discussed the bank's tendency to almost reach that level but then pull back into the teens.

MGM Mirage (MGM), Las Vegas Sands (LVS)

Dubai World reported it has found backing for its $8.5 billion CityCenter joint venture with MGM Mirage. Jeff Macke thinks the news is already priced in and Guy Adami says he has already been looking at LVS instead and given the fact it is up 30%, he would take some profits.

Exxon Mobil (XOM), Chevron (CVX), BHP Billiton (BHP), Transocean (RIG), Baker Hughes (BHI), Siemens (SI), U.S. Steel (X)

Oil's rise to over $50 a barrel on tightening supplies brought up Exxon and Chevron. Tim Seymour thinks BHP, RIG and BHI are good plays, but cautions the news is not so good for copper and iron ore. Adami also likes Baker Hughes and would get long U.S. Steel with a tight stop. Pete Najarian suggested Siemens.

Seeking Alpha is not affiliated with CNBC or Fast Money

Comments

[twitee:]

Keep buying into the Government ponzi scheme, What a country?!
We might as well let Bernard Madoff free, compare to what is happeing!
Land of freedom and opportunity has become the land of sophisticated corruption from the top.

May 04 12:26 PM