'Fast Money' Recap: Volatility to Rise

The stock market found a bid on Thursday off the strength in the technology sector. The Dow finished up 38 points and the Nasdaq closed up 39 points. The team at CNBC's "Fast Money" got some help from Jon Najarian on the upcoming volatility of the market. Also in the show, an interview with the CEO of CSX(CSX - Cramer's Take - Stockpickr), Michael Ward, as well as a discussion on Research In Motion's(RIMM - Cramer's Take - Stockpickr) earnings.

Volatility

The options market is pricing in one of the most volatile Januarys on record. Jon Najarian joined the "Fast Money" crew to discuss his take on this suggested volatility. Najarian mentioned that the front month volatility is significantly lower than it is in January, February or March. He explained that this is suggesting that the market is about to see a lot of volatility.

The options market is showing more front month volatility in the Chinese markets. He believes China is about to make a big rally. Najarian also sees a similar setup for the banks and financials and he disclosed that he is long Morgan Stanley(MS - Cramer's Take - Stockpickr) and Capital One Financial(COF - Cramer's Take - Stockpickr). Jeff Macke likes the trade idea in the financials as long as you have an exit plan.

CSX CEO Interview

Is the weakness in the rail stocks predicting a recession is on the horizon? CSX CEO Michael Ward joined the "Fast Money" crew to discuss his take on the rail sector. Ward said he sees modest growth in revenue and volumes for CSX in 2008. He explained that he sees some challenges in the housing market and automotive market, but he doesn't see a recession coming.

Ward says he is looking for 15%-17% EPS growth through 2010 on a compound annual growth rate (CAGR) basis and he plans to drive down operating ratio to the low to mid 70s. Guy Adami thinks CSX is interesting if it trades down to $40, but he would buy Burlington Northern Santa Fe(BNI - Cramer's Take - Stockpickr) right here.

(Check out this portfolio of rail stocks on Stockpickr.com Railroads.)