Recap of CNBC's Fast Money, Thursday September 4.
Melissa Lee hosted the show and began by explaining that nothing seemed to be working in the market. Lee said the market is now heading toward new lows for the year. Jeff Macke said the selloff picked up steam all day. Pete Najarian said the commodity sector is no longer saving the market. Guy Adami believes that things aren't good on Wall Street when Bill Gross of Pimco walks away from Wells Fargo paper. Adami told viewers it's a traders' market and today felt like another fund was getting out of things. He said look at McDonald's near $60.
Lee turned to financials. Karen Finerman said investors shouldn't try to be heroes with Lehman Brothers. She said her hedge fund is still short some of the big banks like Capital One Financial, Wells Fargo, BB&T and Wachovia. Finerman said more pain is coming for the financial stocks. Macke said The Wells Fargo news is scary because it proves the banks can't raise capital.
On to the oil sector, traders will overshoot crude oil on the downside, Adami said. He believes the trading action in the gasoline market is forecasting a weird day to come for crude oil. Adami said the “gas trade” will take crude up with it. As the commodity trade unwinds, Najarian says the railroad stocks will be sold down to attractive levels. He told viewers to keep an eye on Burlington Northern, Union Pacific and CSX.
Hedge fund manager Bill Fleckenstein, of Fleckenstein Capital, joined the traders to discuss the technology complex. He said the market believed that technology wasn't “GDP sensitive.” However, he explained that isn't the case. Market players have been hiding in tech as a weak dollar play, but now the dollar is rallying and the rest of the world is slowing down. He mentioned that he sees no bull case for tech and believes this is the start of a big unwinding in the space. Fleckenstein says stocks like Juniper Networks and Cisco Systems are vulnerable. His fund is also short Research In Motion on a valuation basis. Some of the technology stocks Fleckenstein likes, but not at current levels, are VMware, EMC and Apple. “You will get another shot to buy Research In Motion at $100,” Macke said. He also added that viewers should use a stop at $95 if they buy Research in Motion at $100. Adami said Cisco is at levels that make sense. He mentioned there are market rumors that Cisco is looking to buy someone like VMware or EMC. Najarian recommended Intel.
Lee turned the conversation to the retail sector after a number of big names in the space reported August same-stores sales today. Finerman said the numbers out of Wal-Mart, Target and American Eagle Outfitters were pretty good. Macke mentioned he continues to like Wal-Mart because it's boring, steady and outperforming. Investors should buy Target and scale out of Wal-Mart, Adami said. Macke disagreed and told viewers to do the opposite.
The Jobs Report - Citigroup (NYSE:C)
Trader Jim Iuorio, of TJM Service, joined the “Fast Money” crew to talk about trading the jobs report due out Friday. Jim says financials will be a buy tomorrow morning. He said the dollar will stay strong and keep a lid on commodity prices. He recommended viewers buy bank stocks like Citigroup, which was down 6% today for a medium to short-term trade. Today was the most pessimistic view I have seen for the bank stocks, Iuorio added. Adami agreed with Iuorio on the dollar strength. He also says gold has a long way to go on the downside.
Tim Seymour joined the traders to discuss the fallout in emerging markets. He explained that for the first time emerging markets are having credit issues. Huge redemptions and liquidations in global funds are happening right now, he adds. Seymour said technically the iShares MSCI Emerging Markets Index has found some support at current levels. However, he says it's a “nasty trade” and he would be very cautious on emerging market. “I have seen a lot of put buying in the EEM in the last few days,” Najarian added. Seymour told viewers if you want to get into emerging markets the EEM is the way to go and for Russia to play the Market Vector Russia ETF.
Shares of Guess? (NYSE:GES) were among the most actively traded stocks on the NYSE today.
Barron's online technical columnist, Michael Kahn came to discuss the energy complex. Kahn said he likes in the energy sector is Diamond Offshore. He explained the chart is showing a long-term bull market trend and is trading at its support level. Another stock he likes is Sunpower. The higher bottoms and rising trend has proven that people want to own it, he said. Macke said he wouldn't buy either stock. Najarian told viewers if they like Sunpower, why not buy Cypress Semiconductor, because you get a piece of the solar space without the full exposure. Adami says a short-term bounce is coming next week for the energy sector, which will be “vicious.” Finerman said she likes Transocean and Pride International.
Jon Najarian joined the traders to discuss some “NFL trades” now that football season is underway. His first stock pick was Molson Coors. Najarian explained that fans will drink beer no matter if their team is winning or losing. Another play he likes is Electronic Arts for the company's sports games. Pete Najarian said investors will get a shot at buying Under Armour as the stock trades down to its support level. Nike has been outperforming Under Armour so that's obvious, he added.
Final Trade – Your First Move for Friday September 5.
Macke said to buy Potash (NYSE:POT) with a stop of $145.Finerman picks International Rectifier (NYSE:IRF) call options for a speculative play on a higher takeover offer by Vishay.Najarian likes McDonald’s (MCD).Guy Adami didn’t have a pick.
Seeking Alpha is not affiliated with CNBC, or Fast Money