Special show tonight…Turning your Fear into Profits.
Pharma Fear Trade
Macke: Look for reliability and volatility to the upside. MRX is a good “anti-aging” play. Also a good M+A target.
Adami: GERN is a good biotech play; has great Intellectual Property and 300+ patents.
Strazzini: Fear of Dying stocks have done best in the past. NVS and AZN are both run by excellent management teams.
Bolling: PFE has failed miserably a couple of times. MRK is a BUY, but stay away from PFE.
The Outbreak Trade
Strazzini: Most people still don’t know what E.Coli is.
Bolling: These have been mostly small and contained outbreaks. We have not yet seen a major outbreak. BG and MON are BUYS when you see massive outbreaks.
Macke: Watch how the management reacts to pressure in an outbreak.
Bolling: Stocks like YUM would get creamed in a real major outbreak.
Adami: ECL is also a good outbreak fear buy.
The Global Conflict Trade
Bolling: You have to own GLD! Also, add these to your global conflict basket: FXE, USO, and water stocks.
Adami: LMT and GD are must-owns.
Macke: I agree. Top picking in stocks like LMT is a fool’s game. Get in now.
Bolling: All these stocks would go up in a conflict.
Strazzini: i would own all of these stocks.
Nightmare on Wall Street
Bolling: In a recession get out of high-end retail, hotels and retail banks. Get into stocks like JNJ, PG and PEP.
Adami: My biggest fear is the euphoria on Wall Street.
Macke: I’m more afraid of flat markets. Even if the market is trending down, it’s still a trend that can be traded. Everyone loses in a flat market.
Trading Hope: BIOTECH
Biotech firms are getting scooped up by big Pharma companies.
Top Biotechnology Analyst Johnathan Aschoff, PhD: PGNX is a great stock. They have an HIV drug just coming out of Phase I and a lucrative anti-constipation drug on the market already.
Strazzini: What are some good pure diabetes plays?
Aschoff: KERX.
Adami: PGNX has a great pipeline and is a nice play.
Bolling: One mis-step by these companies and it can wipe them out.
Strazzini: If you are not a doctor, don’t be heavy in Biotech. You can buy the ETF or build your own basket of 8-10 biotech stocks.
Face2Face
Ted in CT– Can we capitalize on housing fears or is it too late?
Strazzini: You’ve missed the boat on trading housing fear. REITs are doing fine as they’ve taken a lease approach.
Macke: Move on to other sectors.
Jacques in NH– How do I trade the China move out of the dollar?
Bolling: Get long the FXE, short the dollar, and OWN GLD!
Price of War
Mark Newman, CEO of DRS: The Dems are still strong on defense since we are in the middle of a war. The military will always need to replace aging equipment. We are in the market for acquisitions in 2007.
Adami: I love DRS, this is a great little stock and they are doing things the right way.
The Trader’s Mind
Dr. Steve Simring, Psychiatrist: The best traders are former athletes. You have to be steely-eyed to make the big bets in the pits and you cannot be emotional. Live in the present at all times.
The Final Trade
Bolling: BUY GLD.
Adami: BUY LMT.
Strazzini: BUY Silver.
Macke: BUY MRX.
See you tomorrow!

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