Wall Street Addict

Dennis Gartman, author of The Gartman Letter, joined the show to discuss his take on the dollar, which he predicted last Friday was due for a bounce. The dollar had its biggest one day reversal in a year on Monday. He also noted that in the last 4 days the U.S. dollar had the biggest rally versus the Canadian dollar that he has seen in his life. He also wouldn't be surprised to see gold fall another $40. Also, Gartman is looking for oil to fall $10-$15 before Thanksgiving.
Merrill Lynch economist David Rosenberg said on Monday that the last time he's seen a drop in consumer confidence to this degree during the Holiday season; the economy was in a recession. Macke thinks the Tuesday earnings reports from Home Depot (HD) and Wal-Mart (WMT) will be horrific. The only retailer he expects a good earnings report from is Kohl's (KSS) and his wild card is Macy's (M). He would get long Costco (COST) and Target (TGT). Adami thinks a trade is setting up for Coldwater Creek (CWTR), which he mentions has a very high short interest.
E*Trade (ETFC) lost 60% of its value Monday on concerns over the companies loan portfolio. Finerman thinks the most clear trade is to be long TD Ameritrade Holding (AMTD). Finerman sees opportunity for TD Ameritrade to steal E*Trade clients with all the problems they're having. She also likes Charles Schwab (SCHW).
IBM (IBM) bought Cognos (COGN) for $5 billion and Fortune Brands (FO) sold its wine business to Constellation Brands (STZ) for $885 million. Adami declares United States Steel (X) will be the next company to be taken over.
Word on the Street
Technology stocks continued to slide Monday with leaders like Google (GOOG) dropping 5%, Apple (AAPL) dropping 7% and Research In Motion (RIMM) dropping 9%. Adami likes Hewlett Packard (HPQ) ahead of next Monday's earnings report.
Rio Tinto (RTP) hits a record high after BHP Billiton (BHP) laid out the details for its $140 billion all-share offer.
Adami says the big pharmaceutical story is not fiction and Merck (MRK) is for real. He also loves defense play Johnson & Johnson (JNJ). Macke agrees with Adami and that right now is a good time to be long Merck, Procter & Gamble (PG), Pfizer (PFE) and Church & Dwight (CHD) for a defensive portfolio. Najarian wants to keep an eye on Eli Lilly (LLY).
Pops & Drops
Pops - Cisco Systems (CSCO) traded up 2% on Monday as the market declined.
Mattel (MAT) traded up 4% off a JPMorgan upgrade.
Starwood (HOT) traded up 2%
Washington Mutual (WM) traded up 1% as the financial stocks mounted a rally on Monday.
American Airlines (AMR), US Airways (LCC) and Delta (DAL) all traded up more than 5% as oil prices declined.
Starbucks (SBUX) traded up 3%.
Drops - Freeport McMoRan (FCX) fell 10% as commodity stocks were hit off the dollar rally.
Tyson Foods (TSN) fell 3% after cutting its 2008 forecast.
Sotheby's (BID) fell 2%.
Mosaic (MOS) fell 14% off the dollar rally.
Final Trade
Macke likes defensive play Procter & Gamble (PG).
Adami recommends Cisco Systems (CSCO).
Finerman and Najarian both picked TD Ameritrade Holding (AMTD).

Labels: AAPL, AMTD, CNBC, CNBC's Fast Money, COST, CWTR, dennis gartman, ETFC, fast money, Fast Money Recap, GOOG, HD, HPQ, JNJ, KSS, MRK, PFE, RIMM, TGT, WMT

On Wednesday the Dow closed up 76 points as the strength from the Fed rate cut continued to spill. Najarian: investors should look at the volatility in the S&P 500, which is moving back to normal. Reported unusual options activity on Cree (CREE). Could be being bought by General Electric (GE).Macke: market bears are instant messaging him with more short ideas than any other time in his most recent memory.Adami: Friday could be a funky day with options expiration on tap. He took a trip to the UPS Center in New York City to find out what is going on at the packaging giant. Adami likes United Parcel (UPS) for three reasons: international growth, energy hedging and union contracts. He also predicted that Fedex (FDX) will rally on Thursday and investors should sell into the strength.Emerging Markets Trade: The iShares MSCI Emerging Markets (EEM) hit a record high on Wednesday. Their stocks around the globe shot up after the Fed cut. Tim Seymour, of Red Star Asset Management suggests investors buy Tenaris (TS). Seymour recommended Vimpel-Communications (VIP), Mobile Telesystems (MBT) and Mechel OAO (MTL) as liquidity plays.Shoe Companies: Collective Brands (PSS) and Brown Shoe Company (BWS) have taken double digit hits. CEO of Payless and the company blamed the decline on weather and the increased demand for products out of competitor Crocs (CROX). Finerman hates when companies use weather as an excuse, but she thinks investors can buy PSS, BWS and Limited Brands (LTD).Goldman Sachs (GS): Dick Bove, an analyst for Punk Ziegel, is the only analyst on Wall Street who is telling investors to sell GS. GS holds are overvalued with $700 billion in securities. He thinks hedge fund trading business is declining.Word on the Street: TD Ameritrade (AMTD) and Najirian's pick: NASDAQ (NDAQ). Najarian sees no options activity in Oracle (ORCL) ahead of the quarter.Gartman: time to get out of Suncor (SU) and all his Canadian Tar Sands plays. Instead he would get into U.S. multi-nationals like ConocoPhillips (COP).Macke says you can buy Kellogg's (K), Kraft (KFT) and Safeway (SWY) off the strong General Mills (GIS) quarter.Pops & Drops:Pops: Countrywide Financial (CFC), Blackstone (BX), Fortress Investment Group, The Warnaco Group (WRNC)Drops- Carmax (KMX), Comcast (CMSCA), Sirius Satellite Radio (SIRI) and XM Radio (XMSR)Final TradeMacke-Oracle (ORCL)Adami- Goldman Sachs (GS)Najarian- Titanium Metals (TIE)Finerman- Play Victoria Secret with Limited Brands (LTD)

Labels: AMTD, CREE, CROX, EEM, fast money, FDX, GE, GS, KFT, MBT, PSS, TS, UPS, VIP, XMSR

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Goldman Sachs Sep 230 Calls (NYSE:GS - News).
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Frontline Ltd. Aug 50 Puts (NYSE:FRO - News).
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Mastercard Inc. Aug 185 Calls (NYSE:MA - News).
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Chipotle Mexican Grill, Inc. Aug 80 Puts (NYSE:CMG - News).
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
TD Ameritrade Holding Corporation (NasdaqGS:AMTD - News).
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Utilities Select Sector SPDR (AMEX:XLU - News).
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Goodyear Tire & Rubber Co. (NYSE:GT - News).
PowerRatings are courtesy of TradingMarkets.com

Labels: AMTD, CMG, FRO, GS, GT, Hot Stock Options, MA, XLU