Trade the Market Chill

Strazzini says that the market is setting up for failure and a potentially big correction. He recommends buying the following stocks cheap during a correction:

KR

PG

AXP

AXA

AZN

Macke agrees that KR is a great stock.

Bolling: Sell GOOG if you own it already. Buy it again after it drops to around $480. Says that the upcoming correction does not mean the end of the Bull market.

The Tightwad Trade

Corporate America is hoarding record amounts of cash; investors are demanding they pay it back with dividends or make acquisitions.

Adami offers the following two M&A stock picks: LAZ and GHL.

Strazzini: BAX, MCK

Bolling: DVY (ETF of highest dividend-paying stocks) and PG

Barbarians at the Gate

VNO makes $21.6Billion bid for EOP, the largest U.S. office property landlord. Fast Money 5 says not to throw money willey-nilley at commercial REIT stocks…rather wait to see how this all plays out.

The Apple Trade

Strazzini: Inventories increased for iPods, spooked analysts. Mac sales were good year over Year, but down Quarter over Quarter. Sell AAPL tomorrow first thing if you didn’t today.

Adami: The news will stay bad for Apple with the stock options scandal. He says the stock will trade down into the mid-80s range, buy it then.

Wireless Trade:

Strazzini recommends WIN, T, and VZ as good wireless plays.

Adami says to stay away from Sallie Mae (SLM). This stock is DEAD MONEY.

Chemical EXPLOSION Trade

Chemicals are up 4% higher than the S&P 500 this past week. CEO of LYO on the phone. He says that lower oil prices mean higher margins for them, but cautions that if oil spikes again, their margins will be squeezed. LYO is still a BUY.

Stocks on Sale:

Bolling: SMG ($150MM stock buyback)
Strazzini: TXU
Macke: IGT (Buy them cheap during the coming correction)
Adami: AMG This stock is cheap at $109.

>>Happy 52-week high to LVB<<

The Club Trade

COSTCO focuses on a clutter-free enjoyable shopping experience. Macke says BUY COST, Strazzini agrees.

Bolling says to BUY CAG and SHORT SELL SFD.

Trading the Future

Inventor and hedge fund manager Ray Kurzweil on as guest. he says that “medicine has become an information technology, and in 10 years we’ll be able to program our genes like a computer,” Says life expectancy will continue to get longer and longer.

Adami says a great trade for biotech is GERN.

FINAL TRADE:

Bolling: Orange Juice is a BUY.

Adami: LYO is a BUY.

Strazzini: Staying out of market until after correction.

Macke: Offers no trade, wishes Mohammed Ali happy birthday.

See you tomorrow!