This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'Fast Money' Recap: Stock Picking Gets Tough

NEW YORK ( TheStreet) -- The markets sank Tuesday over Greece's precarious future in the eurozone.

The Dow Jones Industrial Average slid 297.05, or 2.48%, to 11,657.96. The S&P 500 fell 35.02, or 2.79%, to 1218.28. The Nasdaq dropped 77.45, or 2.89%, to 2606.96.

Pete Najarian said on CNBC's "Fast Money" TV show that the price action was "brutal" in a wild trading session that saw the volatility index climb above 37 and material names leading the slide down.

Guy Adami said he was surprised by the huge selloff, while Joe Terranova said 1183 is now the line in the sand for the market as investors search for a point of reference.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Karen Finerman said the market was in no man's land. She said she had her shopping list out, noting Google (GOOG) and Cummins (CMI) looked interesting.

Terranova said MF Global (MF) roiled the markets,

Lee noted that the financials were having a tough time, with the Select Sector SPDR Fund (XLF) down 5% on contagion fears.

Fred Cannon, of Keefe, Bruyette & Woods, said the U.S. financials are tied to the hip to the European financials, adding the MF Global situation only made the situation worse.

Cannon said the situation will provide ammunition for the enforcement of the Volcker Rule. He said MF Global was in a regulatory blind spot in terms of its size and broker status. He said the eurozone debt crisis will only change when banks in Europe actually raise capital.

Cannon said regional banks offer an interesting value in the otherwise hard hit sector.

Turning to the markets, Jim Bianco, of Biano Research, noted the high correlation between the S&P index and S&P stocks. He said the average S&P stock is 85% correlated to the index, a 80-year high.

He said it's very difficult to be a stock picker when government intervention overwhelms the markets. He agreed with Adami that there are exceptions to this rule such as McDonald's (MCD) which continues to trade well after hitting a 52-week high in a down tape.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CFN $0.00 0.00%
AKS $4.68 0.00%
CF $33.07 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs