Stocks fell Monday as crude oil hit a record high of $86 and
brought back fears of credit problems. The team at
"Fast Money" dissected the moves in the market.
Citi reported a 57% decline in profits. Karen Finerman wasn't surprised at the report, while Jeff Macke sees no reason to be long the stock. Guy Adami maintains that $45 is still the exit on the stop out for the Citigroup trade. Other financial stocks to keep an eye on are
, which Pete Najarian points out are reporting earnings on Wednesday. He believes both could surprise to the upside.
1987 Crash Comparison
Louise Yamada, who has been ranked the No. 1 technical analyst on Wall Street, joined the "Fast Money" crew to discuss the current technicals of the stock market. Yamada is watching for signs of negative divergences in the market right now. Some divergences are the advancing stocks vs. declining stocks and new highs vs. new lows.
In her opinion, the
might have diverted a crash when it recently cut rates. Yamada explained that she will know more about where the market is heading in a month.
One stock she likes from a technical standpoint is
beacuse the lows are getting lower and the highs, higher. The charts tell her that technology is the best place to be right now. For Najarian, Broadcom looks great because it was tearing higher in a negative tape on Monday.
Najarian goes on to remark that the market is starting to digest the fact that oil at $85 is probably not a great thing. He highlighted the strength in
Oil Service HOLDRs
. He also advised investors to keep an eye on coal stocks like
He suggests that airlines are in big trouble with the current price of oil. Macke concludes that every day is a good day to sell airline stocks.
Tech Earnings Trade
are set to report earnings after the bell Tuesday. Yamada's charts say that tech stocks are giving positive signals. Macke believes IBM will deliver the least surprising report. He predicts it will beat estimates and buy back a ton of stock. Najarian notes that IBM options are pricing in a big move. This indicates the company is likely to knock the cover off the ball and send the shares higher.
Another tech name that Najarian favors is Intel, which he deems in the sweet spot. Intel will benefit from global growth. Macke tells investors to look at Yahoo!, as any signs of the company breaking up will send the stock 10% higher.
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are set to report earnings on Wednesday. The valuation on Altria caught Finerman's attention and she currently owns the stock. Adami personally likes the dividend, and he agrees with Finerman on the valuation on Altria and tells investors it's a "must own" stock.
According to Macke, Coca-Cola will benefit from a weak dollar and global growth. Najarian proposes Coca-Cola as a play on the growth in energy drinks.
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Word on the Street
Chinese stocks continued to power higher Monday with the Hang Seng hitting record highs.
as the world's second largest company. However, Najarian warns the run in the Chinese markets could top out before the summer Olympic Games.
beat earnings estimates, but revenue fell short of Wall Street estimates. Najarian remarks that the options players never came into this stock ahead of earnings and as a result, the stock was perfectly priced ahead of the report. Genentech proceeded to trade down 1% after-hours.
The former CEO of
has hired Bear Stearns to look at alternative options for the company. Finerman hints that a deal could get done with a private equity buyer and she bought the stock on Monday. Macke isn't so sure a deal can get done at PLCE. Instead, he would rather play
for a takeover play.
, a GPS chipmaker, saw unusual options activity on Monday. Najarian participated by buying some SiRF call options Monday after he noticed some heavy call buying. He feels the stock could move higher.
Pops & Drops
traded up 2.5% on rumors of a buyout. However, Najarian notes that the option activity wasn't supporting the rumor.
traded up 4% after a trade publication reported the company might have two potential acquirers. Macke advises investors to get out of the stock.
dropped 11% after the company announce it's looking for a new CFO. Najarian agrees that the company needs new management, and he isn't expecting a pop until that happens.
fell 11%. Najarian counsels viewers to stay away.
dropped 4% on news that buyout firms are getting cold feet. Finerman surmises this will not be resolved quickly. She is not playing this from the arbitrage side.
fell 4% after cutting its fourth-quarter outlook. Adami considers keeping an eye on
to see if the sector is in trouble.
Regional Bank ETF
dropped 3%. Adami feels positive about
into earnings, but the KRE drop has him concerned.
fell 1% on poor earnings due to the Chinese toy recalls. Macke prefers
, a stock he is long.
Greg Troccoli, the director of technical research for Opalesque, joined the "Fast Money" crew from a bar to discuss his take on action in crude oil. Troccoli feels the momentum in crude is unbelievable. It's his opinion that we are now establishing a new floor between $50 and $60. Najarian proposes that the refiners and integrated oil stocks will start to make a move soon.
The crew signs off with their last trade idea for the show.
- Macke would buy NRG Energy (NRG) - Get Report.
- Adami prefers Short Dow30 PROSHARES (DOG) - Get Report for a short the Dow play.
- Finerman is sticking with Flowserve (FLS) - Get Report.
- Najarian recommends Cypress (CY) - Get Report.
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