August Outlook

As investors look toward August and the autumn, they can’t help but wonder if the second half of ’08 will be better than the first. The most recent write-down at Merrill as well as the

turnaround in the overall banking sector has created some optimism that the bottom may be in for banks. Oil prices are down nearly 20% from their record highs, leaving some energy investors

to call a bear market. However, others caution it’s nothing more than a much needed correction. And the recent spat of earnings suggests the consumer is okay, but that could be disguised by

the economic stimulus checks. What’s going to happen in August? I think the bottom is in for financials, says Jon Najarian on_ Fast Money_. I’m encouraged by the recent debt clearing that’s

gone on in the financial services sector. I particularly like Prudential , he says, as well as AIG for unusual call buying. I’d _avoid AIG_, counters Guy Adami. They’re not only an insurance

company; they're also involved in financials services products. Sell the rip and buy the dip, exclaims Jeff Macke. The only thing that’s going to get you buried is staying long in this

market. _Rent_ stocks in August but don't own them. ______________________________________________________ Got something to to say? Send us an e-mail at [email protected] and your

comment might be posted on the _Rapid Recap. _If you'd prefer to make a comment but not have it published on our website send your e-mail to . _Trader disclosure: On July 31, 2008, the

following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (EMC), (DIS), (ATVID), (MSFT); Adami Owns (C),

(AGU), (BTU), (GS), (INTC), (MSFT), (NUE); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (SUN), (TSO), (TYC), (VLO), (RIG), (UFS); Finerman's Firm And Finerman Own (C) Leaps;

Finerman's Firm Is Short (XLF), (BBT), (IYR), (IJR), (MDY), (SPY), (IWM), (COF); Seymour Owns (AAPL), (CSCO), (F), (MER), (MSFT), (INTC); Seygem Asset Management Owns (VIP), Gazprom;

Seygem Asset Management Is Short (RSX)_ Jon Najarian Has Long Call Positions In (AIG); Jon Najarian Owns (BRK.B); Jon Najarian Owns (PG) And (PG) Call Spreads