The commentators on CNBC's "Fast Money" have turned their attention to safe stocks as they keep a wary eye on the overall market.
Guy Adami says there's a flight to quality underway and that you have to find opportunities in quality names like
Pete Najarian sees safety in select technology names like
. (RealMoney Take: Jim Cramer said recently, "They will say it doesn't matter until the Deeres of the world go to $140 and the Intels and Ciscos through $26 and $35." To read more on what Cramer said,
Najarian also thinks there is a floor in on the rail stocks and he likes
However, the market is still marked by pockets of weakness that don't show much sign of recovering.
Jeff Macke says financial markets are panicking and if the Fed hadn't intervened, the financials would be down double digits. Bank stocks again displayed relative weakness on Monday, and Najarian says he doesn't see a bottom in the financials just yet. However, Adami likes
, and if you can't afford BRK then buy what Warren Buffett is buying:
Bank of America
Johnson & Johnson
fell hard after-hours on a company announcement to shut down an Alt-A mortgage unit. Alt-A mortgages are loans to borrowers who don't have to document their income or assets. Adami says the Alt-A mortgages will continue to be a problem for Capital One, while Stacey Briere Gilbert says it will continue to be an issue for the entire stock market and that the market still has too many unknowns.
An Opportunity in Gadgets?
Strength in the stock market on Monday could be found in gadget plays like
Research In Motion
. Why are these stocks displaying relative strength?
Najarian doesn't feel that gadget makers will suffer from the credit market problems, because corporate clients aren't going to stop using the products firms like RIMM make. (RealMoney Take: Tero Kuittinen said recently, "Their success with European and Asian consumers will determine how well Research in Motion will do in 2008 globally." To read more on what Kuittinen said,
Najarian says keep an eye on
. Adami told market players to buy Apple the next time the stock trades 150 million shares over a three-day period, which he sees happening very soon. (RealMoney Take: Cody Willard recently said, "I sold my Apple puts on Thursday and am looking to add to my long-held long again, perhaps with out-of-the-money, longer-dated calls." To read more on what Willard said,
Nobody on the panel really liked Palm as a buy.
Retailers to Watch
A number of retailers will report quarterly results this week.
will report on Tuesday and
on Thursday. Is the subprime mess hurting consumer spending? Macke says the most important thing to watch is the guidance. He will be watching Target,
Dick's Sporting Goods
Other Stocks in the News
Commodity stocks finally saw a bounce on Monday after this sector was annihilated last week. Adami says the copper story isn't over and he would be a buyer of
. Gilbert agreed with Adami. (RealMoney Take: Alan Farley said recently, "Super-miner Freeport-McMoran illustrates the rollercoaster ride taken in the metals group when the broad market started to break down. The stock hit a deep low at 200-day-moving-average support on Thursday and bounced back to end the week." To read more on what Farley said,
traded higher on news it might win a $2 billion Kuwaiti refiner contract. Adami says Fluor has corrected nicely and market players should own it. (RealMoney Take: Jim Cramer said recently, "Fluor can rally $4 and there's not a soul out there who wants to take advantage of the spike." To read more on what Cramer said,
will report earnings Tuesday after the market close. Najarian believes the medical device sector is strong and he sees a good report coming from Medtronic.
will report earnings Thursday before the market opens. Gilbert recommended selling the September 45 calls on GameStop or waiting for a pullback to buy the stock.
will report earnings on Wednesday. Adami says Warren Buffett is the second largest holder of PetroChina and he likes the name for a trade.
Gilbert recently saw unusual options trading in
. The trade she sees traders taking is to buy in-the-money calls and sell twice as many out-of-the-money calls. This trade is a cheap way for traders to gain upside exposure with no downside risk without buying the stock. (RealMoney Take: Jim Cramer recently said, "Atticus also added to its position in MasterCard which I also like but don't own for Action Alerts PLUS." To read more on what Cramer said,
Pops & Drops
popped 10% on news the company is making footwear other than sandals. Gilbert says don't sell. (RealMoney Take: Kristin Bentz said recently, "But here's where many investors get confused: The Crocs brand represents more than one style of shoe that suddenly reached mass popularity. The company isn't a one-trick pony." To read more on what Bentz said,
traded up 10%. Najarian says solar stocks are for real and he sees this stock going higher.
traded up 4% on positive breast-cancer results for the Neuvenge compound. Najarian says the stock had a nice pop but it's only in stage 1 of clinical testing.
traded up 6% as value investors scooped up shares. Najarian says the Chinese economy is good and so is BIDU.
popped 5% as speculators think Sam Zell will close the deal to buy the company. Gilbert says the deal closing is still an unknown.
fell 2%. Adami says own this stock when it drops 50% from its highs. (RealMoney Take: Jim Cramer recently said, "What to buy? Exactly what everyone was shorting: the big holdings of the hedge funds that people were trying to break, including Lehman" To read more on what Cramer said,
dropped 4% off a negative court ruling. Macke says sell this stock.
fell 8% as Wall Street questioned the credibility of the firm in the midst of subprime crisis. Gilbert isn't a fan of any stock that is exposed to subprime.
fell 3% on card holder delinquency fears. Macke is long this stock and he isn't selling.
Fast Money Mail Bag
Chuck from New Jersey writes, "If the Fed were to cut interest rates, I was thinking of buying various ETFs in order to take advantage of a broad market bull rally. What are your thoughts on buying the
Ultra QQQ Proshares
StreeTracks Gold Trust
Adami likes the QLD, but he is concerned about the GLD. Gilbert likes the GLD trade.
Macke would sell
Abercrombie & Fitch
. Najarian is bullish on
because of the action in the options. Adami and Gilbert like
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