'Fast Money' Recap: Watch Out, Wachovia

Stocks in New York got smacked on Monday as the financials languished. The Dow and the S&P 500 both lost 1.1%, and the Nasdaq fell 1.2%.

On CNBC's "Fast Money" TV show, Jeff Macke said that the S&P 500 couldn't get over 1400 and sold off. Financials reacted poorly to credit ratings today, he said. Investors can buy the dip in that sector, he said.

Karen Finerman said she's going to wait a little longer before she adds to her fund's Citigroup (C Quote) position.

Jon Najarian said that Wachovia (WB Quote) may move lower. He said the company's acquisition of Golden West happened a long time ago. He said that if the reason CEO Ken Thompson was shown the door today wasn't just that acquisition, there may be other problems ahead for the stock.

3 Stocks I Saw on TV

He also observed September put activity in KeyCorp (KEY Quote). He said that stock will probably grind lower from here. He was also bearish on Bank of New York Mellon (BK Quote).

Guy Adami agreed that KeyCorp looks like it has room on the downside. He also warned that there wasn't enough volume on Wachovia's downward trade today to show capitulation in the stock. He said investors should wait for a bigger-volume day before getting long Wachovia.

Macke said that Lehman Brothers (LEH Quote) also failed to show capitulation today. He said he'd rather buy Goldman Sachs (GS Quote) and Citigroup (C Quote) on dips.

Refined Tastes

In the energy sector, Adami said it may be time to buy the refiners. He pointed out bullish action in Tesoro (TSO Quote) and observed that crack spreads may begin to work in those companies' favor. He said viewers can also play Holly Corp. (HOC Quote) and Valero (VLO Quote), but Tesoro remains his favorite.

Jon Najarian recommended taking profits in Frontier Oil (FTO Quote), which is up 30% in the past month. In coal, he said that Massey (MEE Quote) and Alpha Natural Resources (ANR Quote) could move up quickly because they are a play on steel.

Adami said that Peabody Energy (BTU Quote) sets up for an "easy" trade on the long side. He cautioned, however, that there's downside risk of 9% for investors.

Chip Shots

Apple (AAPL Quote) and other tech stocks traded lower today. Macke pointed out that Intel (INTC Quote) had an OK day. He said Apple was due for a pullback, but he is concerned about Microsoft (MSFT Quote) and Yahoo! (YHOO Quote).

Adami said investors can buy Intel on this pullback.

All Hands on the Switchboard

Finerman pointed out that AT&T (T Quote) has told staffers not to take vacation between mid-June and mid-July. She said this might indicate the date for the debut of the new iPhone.

Najarian agreed. He said investors should hold Apple until the release of the iPhone.

FedEx Still on Time

FedEx(FDX Quote) announced it was taking a writedown related to its acquisition of Kinko's. Macke said that the impairment amounts to $2.22 a share. He said the writedown doesn't affect FedEx on a fundamental basis and the company should be fine.