Recession fears have put the S&P 500 on track for the worst start to January in history. The Dow closed down 59 points and the NASDAQ lost 6 points. The team at CNBC's "Fast Money" try to help investors understand the movements in the market and Brian Schaeffer visits the show to give insight into Apple.
Karen Finerman mentioned she bought back a lot of short positions Friday on names like
Lehman Brothers Holdings
( LEH) and
. Pete Najarian advised investors and traders to take profits on short positions that have worked. He disclosed that he took 50% of his put options trades off the table, but he does still see problems ahead for the market. Guy Adami explained how some of the defensive names were sold off Friday and that leads him to believe we are closer to the end of the selling than we were a few days ago.
Apple Earnings Preview
is set to report earnings on Tuesday. Brian Schaeffer, Managing Director at VDM Capital joined the "Fast Money" crew to discuss his take on Apple. Schaeffer explained that he is very concerned about the fundamentals going forward for Apple. He sees increased competition for the iPhone and the iPod and he thinks margins will shrink. Schaeffer questioned why the iPhone is half the price it was a month ago?
He predicts Apple will issue a tepid forecast when earnings are reported. Schaeffer also doesn't like the look of Apple from a technical perspective. If the stock breaks $160, it will head to $125. Najarian disagreed and he offered that the iPhone and iPod are just a catch to get people into the Apple stores to buy the Mac. He expects Apple to see huge demand as they move into Japan and China and he feels they will blow numbers away on Tuesday.
fell 7% this week after Steve Jobs failed to spur excitement at Macworld. Najarian speculated that Apple could announce a 2-for-1 stock split when earnings are reported. Macke thinks Apple will report a great quarter, but he is concerned about the stock. He thinks a better tech play is
and he would look to buy it around $32. Adami agreed with Macke on MSFT.
Subprime Saga Continues
Subprime worries continue to weigh on financial stocks.
traded to its lowest level since 1998 and
Goldman Sachs Group
lost 6% on the week. Adami thinks Goldman Sachs is cheap and will beat earnings.
(Here's another approach to the subprime saga on Stockpickr.com
Finerman thinks the worst is over for
( MER) and the stock is getting attractive. Najarian says if you want to play the financials buy
. Macke explained unless you like self-abuse don't touch the financials.
Energy, metals and agriculture stocks were hammered this week as investors fear the commodity bull run might be over. Adami thinks it's time to get out of
if you own it. Finerman disclosed that she is long natural gas and refiners. Macke predicts the commodity stocks have a lot more room to fall. Najarian says the
Energy Select Sector SPDR
are going lower because he sees too much put option activity in both ETFs. Pharma Sick
Big pharmaceuticals names like
( SGP) were hit hard this week after two studies questioned the effectiveness of cholesterol and antidepressant drugs. Najarian urged investors to take profits in the drug names. Adami likes
here. Worst Company On Earth
The "Fast Money" traders each offered up their nomination for the worst company on earth. Macke retired
and filled the vacancy with
. Najarian thinks both
( MOT) and
( MOT) qualify. Finerman's pick was
Solarfun Power Holdings
( SOLF) for its lack of disclosure and questionable management. Adami picked
Advanced Micro Devices
Retail stocks have taken a beating since August, but the sector started to show some strength this week. Finerman thinks the sector was oversold. She highlighted how the retail sector has made a strong rebound over the last 2 days and she favors
for its strong cash position. Macke recommended building a small basket with names like
Word on the Street
reported a 4% rise in profits for the fourth-quarter. The stock traded up 3% on the news. Macke thinks GE at these levels is compelling. He explained that GE is an indicator for the rest of the market and the global economy. Adami likes
for a trade into their earnings on January 21st.
( MOT) plunges 24% after the telecom giant reported a loss in subscribers and announced job cuts. Adami says Sprint is okay for a trade here after 225 million shares changed hands on Friday.
Pops & Drops
The following POPS&DROPS segment highlighted the week's biggest moves.
traded up 2% after the Mortgage Bankers Associations said on Wednesday that mortgage application volume rose 28%. Adami wouldn't go racing into XHB.
Advanced Micro Devices
traded up 13%. Macke explained the market celebrated low expectations with AMD.
American Eagle Outfitters
traded up 11%. Finerman disclosed she owns AEO.
fell 6%. Najarian explained that the market is selling the good names like Google.
fell 15% after the oil service company reported disappointing fourth-quarter profits. Adami suggests looking at SLB next week.
( MOT) fell 9%. Najarian called MOT the Sprint of the cellphone makers. He feels margins will take a hit at MOT.
( MOT) plunged 28% after the telecom giant said it lost 700,000 customers last quarter.
Emerging Market ETF
fell 8%. In Adami's opinion, it has more room to go lower.
Russell 2000 ETF
fell 4%. Finerman declares the selling is now overdone on the small caps.
Quicker Then the Ticker
It always feels good when you get it right, so the team revisited the trades that went well.
On November 11th Adami told investors to buy
Johnson & Johnson
. He was dead right and the stock held strong while the rest of pharma took a beating.
It was January 3rd when Macke issued a sell call on the agriculture sector. He was right on the money and the sector took a beating since his call.
On December 27th Najarian recommended buying
. He was right and BIIB went up 5% since his buy recommendation.
January 8th was the day Finerman said to short small cap stocks. She was right and the
iShares Russell 2000 Index
fell 8% since her call.
The team's ideas don't always go as planned and they are willing to face the firing squad.
On January 4th Najarian told investors to buy
heading into MacWorld. He was wrong with his Apple call, but he isn't giving up on the name. Najarian thinks Apple will be a good trade into their earnings announcement next week.
It was back on December 5th Finerman recommended buying
. Unfortunately, DSW has gone down since her call. However, Finerman is sticking with DSW and instead would sell
Then on December 26th Adami advised buying
. He was off the mark and SKS has fallen since he gave it out. Adami still feels that SKS looks interesting.
Just Thursday Macke told investors to put
on your radar. He messed this call up big time and UA dropped 24% on Friday. Macke is changing his tune now and he told viewers to take UA off their radar.
There was no Final Trade segment heading into the holiday weekend.
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