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'Fast Money' Recap: Watching Washington

NEW YORK ( TheStreet) -- The broader markets initially sold off due to worries over the government shutdown, but closed flat by the end of the day.

On CNBC's "Fast Money" TV show, Guy Adami said the stock market will react in the same manner, regardless of whether the political issues are from Republicans or Democrats. He added that the market's inability to fall has not pressed any urgency on Washington.

When President Obama said, "Wall Street should be worried," Adami admitted those were powerful words that concerned him. He stressed that 1,670 is still an important level for the S&P 500.

Karen Finerman said the shutdown could last for a while, but isn't as important as the upcoming debt ceiling debate.

Tim Seymour said gold finally reacted to what's going on in the world, but he would be a seller of this rally because of the eventual taper by the Federal Reserve. He added that he would buy weakness in the U.S. dollar for the same reason.

Chris Krueger, senior policy analyst at Guggenheim Securities, was a guest on the show and said the shutdown will probably last through the weekend and possibly even until the debt ceiling debate on Oct. 17. He added that there's a 40% chance Congress will fail to raise the debt ceiling, but admitted it will likely end up raising it at the very last minute.

Mike Khouw said there was a huge play put on Microsoft (MSFT) via options. Specifically, he noted that a buyer sold 50,000 of the Jan. $31 puts (a bullish play), and used those proceeds to buy 50,000 Jan $34 calls (also a bullish play).

Adami said that traders playing this name because of the rumors regarding Ford's (F) CEO Alan Mulally going to Microsoft, should take profits with the stock near resistance of $34. He added that $31.50 has acted as decent support.

With a 3.5% dividend yield and trading at 3.5 times book value, Seymour said the stock is cheap and that investors should forget about the new CEO for now.
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