Top 3 - Charting Through The Storm, Abandoned At The Altar and A Defensive Answer
Technicals are often the best tool for charting trades in a volatile market. Bolling is one of the best and he first talked about how the S&P chart suggested if it falls below 1465 "things will get very dicey." You can own the S&P 500 Index "Spiders" ETF (
SPY) down to this number according to him. Bolling also recommended owning the PowerShares QQQ Trust (
QQQQ) with a 1950 stop out. Najarian feels that tech is a better place to be and safer than the S&P.
Top three #1 video.
A previous segment on ETFs was linked.
The market has gone higher on takeover speculation this year. Macy's, Inc. (
M), Wendy's International (
WEN) and Lyondell Chemical Company (
LYO) were named as all grabbed headlines as investors bet on potential buyouts. Najarian told us that Target Corporation (
TGT) is vulnerable to further selling as there is no takeover support.
WEN, M and Starwood (HOT) he also thinks will lose value without speculation. Macke thinks Dillard's, Inc. (
DDS) is a good play on this kind of weakness along with
TGT, but thinks we should get out of
WEN. Adami pointed to a possible buying opportunity in United States Steel Corporation (
X) and Nucor (
NUE) with a wait and watch approach.
Top three #2 video.
The market on Thursday was called a bloodbath with investors needing to get defensive. Investors were told not to freak out by Bolling, and a hedge was named as iShares Dow Jones Select Dividend (
DVY) and also his way to capitalize on world growth is PowerShares Intl. Dividend Achiev (
PID). Macke thinks sticking with The Clorox Company (
CLX) and The Procter & Gamble Company (
PG) are the way to play the current market. He also likes Consumer Staples Select Sect. SPDR (
XLP) as it has a lot of Wal-Mart Stores, Inc. (
WMT) in it.
Top three #3 video.
Word On The Street
This was the second worst day of the year and
the day's headlines were analyzed by the panel here.
Face2Face
The drop of the Dow is dominating the headlines and the webcams were turned on to
discuss in the segment linked here.
Mr. Ratigan Goes To Washington
The strength of our economy is in question and Friday brings a unique opportunity to get some answers. Ratigan is going to Washington D.C. for the CNBC White House Summit. There are many higher ups in the government who will be there for a round table discussion from the Roosevelt Room. Adami wonders if Secretary Paulson can explain his feelings on the weakness in the dollar. Bolling wonders how closely Paulson works with Fed Chief Ben Bernanke. Macke is curious about America's relationship with China on a trade basis.
Round table video.
Get Smart!
With the market falling 400 points in one day the show asked what the strategy was. Buffett is buying Kraft Foods Inc. (
KFT) along with Icahn and Peltz. Ackerman is getting into Target Corporation (
TGT). Macke talked about how
KFT is a great consumer staple play and they are likely to come under pressure and get chopped up. Bolling agrees with the buy call on
KFT and Adami said it is alright to follow these guys into
KFT. Najarian named other defensive names as Kimberly-Clarke Corporation (
KMB) and The Clorox Company (
CLX). Macke named the trade of the year thus far when Steve Schwarzman sold Blackstone Group L.P. (
BX) IPO at $31.
Smart video.
Final Trade
Macke thinks buying Costco Wholesale Corporation (
COST) is the way to go. A name in biotech that Najarian likes is Myriad Genetics, Inc. (
MYGN). Dell Inc. (
DELL) was Adami's pick due to PC shipments being up 12% year over year. Last Bolling recommended Goldman Sachs Group, Inc. (
GS) on Thursday's dip.
Final video.
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