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Fast Money Recap: Bull Party Continues

The Fast Money team and post-Fed cut trades.

The Dow closed up 76 points on Wednesday as the strength from the Federal Reserve rate cut continued to spill over for the bulls. The team at CNBC's "Fast Money" begins to look beyond the Fed decision and explores trade opportunities with this positive momentum.

Pete Najarian states that investors should look at the volatility in the S&P 500, which is moving back to normal. However, Jeff Macke says that market bears are instant messaging him with more short ideas than any other time in his most recent memory. Guy Adami predicts that Friday could be a funky day with options expiration on tap.

Speaking of Options

Najarian is seeing unusual options activity on

Cree

(CREE) - Get Report

. He points out that option players are buying a ton of September $35 calls, which could signal a takeover before the end of the week. He also noted that the rumored buyer was

General Electric

(GE) - Get Report

. (

RealMoney

Take: Dan Fitzpatrick said recently, "Cree is poised to break out from a short-term "flag" pattern." To read more on what Fitzpatrick said,

click here.

Adami's Analysis

A new segment launched on Wednesday called "Adami's Analysis." Adami took a trip to the UPS Center in New York City to find out what is going on at the packaging giant. Adami likes

United Parcel

(UPS) - Get Report

for the following three reasons: international growth, energy hedging and union contracts. He went on to explain that UPS hedges against energy by giving their drivers routes that only allow for them to turn right the entire time.

On Sept. 14, a Credit Suisse analyst rated the stock an outperform. Adami also predicted that

Fedex

(FDX) - Get Report

will rally on Thursday and investors should sell into the strength. (

RealMoney

Take: Andrew White said recently, "As estimates have declined -7% over the last three months, FedEx may (but not necessarily) negatively surprise." To read more on what White said,

click here.)

Emerging Markets Trade

The

iShares MSCI Emerging Markets

(EEM) - Get Report

hit a record high on Wednesday. This action prompted Merrill Lynch to tell clients that this is the last great buying opportunity for emerging markets. Is it time to get in?

Tim Seymour, of Red Star Asset Management, joined the crew to discuss the emerging market trade. Seymour explained that stocks around the globe shot up after the Fed cut rates.

He feels many of these markets are up too much to jump into right here. Seymour suggests investors buy

Tenaris

(TS) - Get Report

on speculation of a takeover. Najarian asked Seymour for some liquidity plays in emerging markets and he pointed him to Russia via

Vimpel-Communications

(VIP)

,

Mobile Telesystems

(MBT) - Get Report

and

Mechel OAO

(MTL) - Get Report

.

The Old Soft Shoe

Shoe companies have been some of the hardest-hit stocks since July. Names like

Collective Brands

(PSS)

and

Brown Shoe Company

(BWS)

have taken double digit hits.

CNBC

Retail Reporter Margaret Brennan joined the crew to discuss how investors can play the shoe trade. Brennan recently spoke with the CEO of Payless and the company blamed the decline on weather and the increased demand for products out of competitor

Crocs

(CROX) - Get Report

. Finerman hates when companies use weather as an excuse, but she thinks investors can buy PSS, BWS and

Limited Brands

(LTD)

.

Goldman Sell Call

Dick Bove, an analyst for Punk Ziegel, is the only analyst on Wall Street who is telling investors to sell

Goldman Sachs

(GS) - Get Report

. Bove believes that the $700 billion in securities that GS holds are overvalued. He also feels that the hedge fund trading business is declining because fewer and fewer profitable products are being launched.

Bove maintains that GS will trade back to $160. Najarian remarks that if you have been long GS for the recent run then take half the position off in front of earnings. (

RealMoney

TheStreet Recommends

Take: Jordan Kahn said recently, "So I have to wonder if Goldman didn't make some bets of its own shorting some of this toxic paper, and squirrel away a few shekels as a result." To read more on what Kahn said,

click here.)

Word on the Street

TD Ameritrade

(AMTD) - Get Report

reported strong trading volumes for August. Najarian responds with a bullish outlook on the online brokers and his pick for a trade is

NASDAQ

I:IXIC

.

Suncor Energy

(SU) - Get Report

falls on rumors of higher taxes for Canadian oil sands producers. Dennis Gartman now says it's time to get out of Suncor and all his Canadian Tar Sands plays. Instead he would get into U.S. multi-nationals like

ConocoPhillips

(COP) - Get Report

.

General Mills

(GIS) - Get Report

reported a rise in profits and reaffirmed guidance. Macke says you can buy

Kellogg's

(K) - Get Report

,

Kraft

(KFT)

and

Safeway

(SWY)

off the strong GIS quarter. (

RealMoney

Take: Ron Thomas said recently, "In my opinion, there are two big concerns preventing General Mills stock from discounting a high-single-digit growth rate." To read more on what Thomas said,

click here.)

Oracle

(ORCL) - Get Report

hit a 52-week high ahead of its earnings call scheduled for Thursday after the market close. Najarian sees no options activity in ORCL ahead of the quarter. (

RealMoney

Take: Jay Somaney said recently, "I am expecting Oracle to beat guidance for the August quarter and also raise guidance for the November quarter." To read more on what Somaney said,

click here.)

Pops & Drops

Pops-

Countrywide Financial

(CFC)

trade up 3% after bullish comments from the CEO. Finerman remains apprehensive on the stock.

Blackstone

(BX) - Get Report

popped 5% on the thinking that the rate cut will bring back cheap money for private equity. Adami says take profits.

Fortress Investment Group

traded up 9% for the same reason that BX went up. Finerman says take profits.

The Warnaco Group

(WRNC)

exploded up 15%. Najarian respects the move based on it's decision to shed parts of the company.

Drops-

Carmax

(KMX) - Get Report

fell 15% after cutting full year forecasts and lowering sales estimates. Macke predicted this drop recently and said the trade is done.

Comcast

(CMSCA)

fell 3%. Finerman warned investors against shorting the cable firm.

Sirius Satellite Radio

(SIRI) - Get Report

and

XM Radio

(XMSR)

both fell 4% after UBS analyst Lucas Binder said the merger is in the stock price. Macke has a negative opinion about the downgrade and instead he is bullish on the names.

Final Trade

The crew wraps up the show with their best trade ideas.

  • Macke favors Oracle (ORCL) - Get Report.
  • Adami says lock in profits in Goldman Sachs (GS) - Get Report ahead of earnings.
  • Najarian highlighted Titanium Metals (TIE) for the upside options activity.
  • Finerman says play Victoria Secret with Limited Brands (LTD) .

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