On Friday, why did Fast Money's Jeff Macke say "becoming socialist is good"?

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Question: On Friday, why did Fast Money's Jeff Macke say "becoming socialist is good"?

Answer: he's long Citi and GM


Best 5 Days Since 1933

The Dow and S&P 500 finished with their best 5-day gain since 1933 as financials surged on signs that liquidity measures were beginning to work.

The S&P 500 closed over 12% higher on the week, while the Dow climbed a solid 10%, also on the week.

Strategy Session with the Fast Money Traders

The stock market appears more confident, muses Joe Terranova. Hopefully the pool of toxic assets is being cleaned out.

There’s still a lot to do in this economy, counters Dennis Gartman. But the stock market is driven by confidence and this is impressive.

Becoming socialist is good for a trade, says Jeff Macke sarcastically. Currently, I’m long GM and Citigroup but I suspect they are both destined for bankruptcy. However, in the short-term the government will probably give them money and I’m getting infront of that wave.

I’m also long Citi, says JJ Kinahan, Chief Derivatives Strategist, Thinkorswim.com. But I agree with Macke.

With December approaching, Joe Terranova reminds the traders that the beginning of the month tends to be awful.

But, if we can get through the first couple days we could have a good month, he says.

However, if we begin to fail at the beginning of the month, we’ve got a problem, counters Dennis Gartman. If not, maybe we’ll have a rally on our hands.

Expectations are low, adds JJ Kinahan. So as long as data isn't worse than expected we could bounce.

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OIL DROPS ALMOST 6%

Oil prices dropped more than 5 percent to below $52 a barrel on Friday on demand concerns and signs OPEC would defer cutting production when it meets this weekend.

If you want to play energy I’d look at ExxonMobil , says Joe Terranova. Forget the commodity itself.

In the big picture, the commodity space is probably as low as it’s going to go. But don’t buy until you see a pronounced move higher, adds Dennis Gartman,

And don’t expect the giant moves to $144 like we saw this summer, adds Terranova. That’s not likely to happen again. It’s time to understand, we’re not going back to that.

At least not for another 10 or 15 years, concurs Gartman.

Vicious reversals are characteristic of busted bubbles, exclaims Jeff Macke.

Of all the commodities out there if you’re looking for a play, I think you might see a short squeeze in natural gas in December, adds Terranova.

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WHALE WATCHING: ICAHN ADDS TO YAHOO

In a move likely to fuel speculation over Yahoo's search for a new chief executive, activist investor Carl Icahn has bought up close to 7 million additional shares of the Internet company, according to regulatory filings.

I wish Icahn would just walk away, says Macke. He’s won other battles in the past but he’s not going to this time.

I also find the whole company absurd, adds Dennis Gartman.

They’re playing against Google and they’re not go to win, concurs JJ Kinahan, Chief Derivatives Strategist, Thinkorswim.com.

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MACY'S JUMPS 6%

Shares of Macy’s surged on Friday after CEO Terry Lundgren said Black Friday sales were stronger than expected. Macy’s also expects to close up to 10 stores next year and is in a position to use $950 million in cash to pay down debt.

I’m really surprised to hear that, says Dennis Gartman.


CNBC.com with wires

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URL: http://www.cnbc.com/id/27954759/