'Fast Money' traders Bonawyn Eison and Mike Khouw share their 2026 trading acronyms

Key Concepts

• Trader Acronyms: Strategies employed by traders, represented by acronyms for stock selection.
• BULL Strategy: A counter-trend, headline risk-focused trading approach.
• FASTER Strategy: A rotation strategy seeking companies with strong sales growth and relative undervaluation, moving away from the AI trade.
• Headline Risk: The potential for stock price volatility due to news events.
• Counter-Trend Trading: A strategy that involves taking positions against the prevailing market trend.
• Geopolitical Risk: Risks arising from political instability or conflicts.
• Debasement Talk: Concerns about currency devaluation.

BONOAN’s BULL Strategy (2024)

Bonowan’s 2024 trading strategy, represented by the acronym “BULL,” focuses on identifying opportunities arising from counter-trends and headline risk. This approach contrasts with a strict adherence to the original rules, acknowledging a change in strategy as “if you ain't cheating, you ain't trying.” The core principle is that the market currently signals a need to trade based on these factors to outperform.

Four specific stocks exemplify this strategy:

• Bitcoin (BTC): Despite a “precipitous fall,” Bonowan believes geopolitical risk and concerns about currency “debasement” create a potential path for Bitcoin to increase in value.
• Yura (Specific ticker not mentioned): The announcement regarding power and electricity creates uncertainty, but Bonowan anticipates opportunities regardless of the ultimate “winners and losers” in the electric supply sector.
• Eli Lilly (LLY): Bonowan identifies a “two horse race” between Eli Lilly and Novo Nordisk, but acknowledges the “headline risk” associated with potential drug price negotiations, which could impact the stock price in either direction.
• Lockheed Martin (LMT): Geopolitical risk is a key driver for LMT. The stock is susceptible to volatility based on statements from figures like Trump regarding share buybacks and dividends, but increased defense spending due to geopolitical tensions could also boost its value.

Mike’s FASTER Strategy (2024)

Mike, the 2024 winner, presents “FASTER” as his 2025 trading acronym. This strategy represents a rotation away from the current focus on Artificial Intelligence (AI) stocks. The criteria for stock selection are: year-on-year sales growth exceeding overall economic growth and the S&P 500’s growth, coupled with a valuation cheaper than the S&P 500.

The components of the FASTER strategy are:

• Fluor Corp (FLR): An engineering, procurement, and construction company with significant involvement in the utility sector, particularly through its ownership stake in NuScale Power.
• Alcoa Corp (AA): A primary aluminum producer. The rationale for its inclusion is considered “self-explanatory.”
• Schlumberger (SLB): An oil services company.
• The Trade Desk (TTD): A digital advertising technology company.
• Exelon (EXC): A utility company, previously discussed in the program.
• Ralph Lauren (RL): A consumer discretionary company, selected based on strong performance and potentially undervalued status.

2024 Winning Portfolio Recap

The 2024 winning portfolio, which achieved a nearly 16% gain, consisted of:

• S&P Equal Weight ETF: Providing broad market exposure.
• I Bet Bitcoin Fund: A fund focused on Bitcoin.
• REITs India: Real Estate Investment Trusts focused on the Indian market.
• NANCY: A fund tracking stocks traded by Democratic members of Congress.
• Alphabet (GOOGL): The parent company of Google.

This portfolio collectively rose approximately 16%.

Logical Connections & Overall Synthesis

The discussion highlights a shift in trading perspectives. Bonowan’s “BULL” strategy acknowledges the current market environment necessitates a focus on counter-trends and reacting to unpredictable events (“headline risk”). Mike’s “FASTER” strategy suggests a potential market rotation, anticipating a move away from the high-growth, often richly valued, AI sector towards companies demonstrating fundamental strength in sales growth and relative value.

The segment demonstrates the dynamic nature of trading strategies and the need to adapt to changing market conditions. Both traders emphasize identifying opportunities where prevailing narratives might be mispriced or where external factors create volatility. The winning portfolio of 2024 demonstrates the potential for diversification and incorporating alternative assets like Bitcoin and politically-themed ETFs.