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'Fast Money' Recap: Victors and Victims

A volatile market tests the trading skills of investors.

The stock market continued to see wild volatility on Monday. The Dow fell 100 points in early trading but rebounded to close up 50. The team at CNBC's "Fast Money" navigated the choppy waters of the market.

In Pete Najarian's opinion, the

trading range on the market is going to be very large and the swings will get bigger and bigger. Jeff Macke warned that the market had a textbook bounce on Monday and the "all clear" signs are not in sight just yet.

Victors of Volatility

Apple

(AAPL) - Get Report

crushed Wall Street estimates by reporting a 67% jump in profits. If you ask Najarian, it's an amazing number and everything is working. He also mentioned that Morgan Stanley is now projecting a $225 price target for Apple. Najarian recommends looking for any pullback in Apple to get

long. He owns it and says he will continue to stay long.

American Express

(AXP) - Get Report

beats expectations and trades higher after hours. Karen Finerman likes American Express and advises buying it on a pullback. Guy Adami also likes the name and he believes it's a sea-change stock.

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Merck

(MRK) - Get Report

reported a 62% jump in third-quarter profits and the stock trades higher. Macke continues to be bullish on Merck. But Najarian is concerned about the

P/E on Merck. Adami suggests looking at

Pfizer

(PFE) - Get Report

on a

valuation basis.

The homebuilding stocks were strong on Monday with the

Homebuilders ETF

(XHB) - Get Report

trading up 3%. Finerman mentions that

private equity group Hellman & Friedman bought

Goodman Global

(GGL)

for $2.65 billion She tells viewers to trade off that news by going long

MDC Holdings

(MDC) - Get Report

.

Volatility Victims

Texas Instruments

(TXN) - Get Report

shares dip on the chipmaker's outlook that was below Wall Street estimates. Najarian hints that Texas Instruments isn't managed as well as

Apple

(AAPL) - Get Report

and he would rather own Apple. Adami counsels investors to buy

Intel

(INTC) - Get Report

off the TXN numbers.

Crude oil and gold both fell 1% Monday as the dollar gained strength. Adami maintains that crude is overextended up here and the next move will be $8 to $10 down. He also predicts gold will fall, if the dollar continues to reverse higher. Najarian continues to like the oil service sector.

(To beat volatility, try looking at this portfolio on Stockpickr.com:

SEI U.S. Managed Volatility Fund

.)

Merrill Murmurs

Merrill Lynch

(MER)

is set to report earnings on Wednesday.

CNBC's

Charlie Gasparino joined the "Fast Money" crew to discuss his take on Merrill. Gasparino says people are expecting a $5 billion writedown for the third quarter. His sources are also telling him that this same sized writedown could happen for the fourth quarter. Insiders at Merrill tell him that some are calling for CEO Stan O'Neal's head. Even outside shareholders want him out. Macke tells investors not to bother buying this stock; no one knows where the bottom is. Gasparino is now giving O'Neal 8-to-1 odds of being removed as CEO.

Future for SanDisk

SanDisk

(SNDK)

co-founder, president and COO Sanjay Mehrotra joined the "Fast Money" crew to discuss his firm's prospects. Mehrotra says demand remains strong especially for the mobile-phone segment of the business. He sees continued growth for SanDisk in 2008 and higher profitability. Mehrotra refused to comment on speculation that the company could be bought out. Najarian doesn't like SanDisk shares on valuation, but he sees a takeover candidate at play here. Instead, Adami prefers it for a short-term trade.

Oil Trade

Higher oil prices may actually cause

BP

TST Recommends

(BP) - Get Report

and

Exxon

(XOM) - Get Report

to report a decline in profit for the first time in five years. Finerman wants to short tanker stocks like

Teekay

(TK) - Get Report

because of declining tanker rates. Najarian agrees that shorting tanker stocks could be a good idea. Adami believes Exxon is going to miss on Nov. 1 and will trade to $86 by the end of the week.

Retail Earnings Outlook

Amazon.com

(AMZN) - Get Report

is set to report earnings Tuesday after the bell. Macke loves the stock and thinks the company will blow out the earnings. Finerman prefers

Target

(TGT) - Get Report

and

Wal-Mart

(WMT) - Get Report

, and she hopes they trade lower so that she can buy more for her hedge fund. Finerman thinks there is value in the right retail stocks at these levels. Adami is partial to

United Parcel Services

(UPS) - Get Report

ahead of earnings for an online retail play. He explained that if Amazon is doing well, then UPS will benefit.

(Another way to watch retailers is through this portfolio on Stockpickr.com,

Retailers Tracking Comparison

.)

.

Pops & Drops

Pops --

Altria

(MO) - Get Report

traded up 1% after a UBS upgrade. Finerman is bullish on Altria.

Kimberly Clark

(KMB) - Get Report

traded up 5% after posting strong profit numbers. Macke likes the management and performance out of KMB.

ExpressJet Holdings

(XJT)

traded up 16% after the firm announced possible plans of going private. Monday's action was just a short squeeze according to Adami. He would let it run a few more points and then sell it.

Sears Holdings

(SHLD)

popped 4% after a positive mention in

Barron's

. Finerman would rather be long

Target

(TGT) - Get Report

.

Royal Caribbean Cruises

(RCL) - Get Report

traded up 8% after reporting strong profits. The stock is working for Macke.

Radiation Therapy Service

exploded higher by 44% after Vestar Capital Partners took the company private. Najarian points out that this was a serious pop.

Lululemon Athletica

(LULU) - Get Report

traded up 5% after the firm raised third-quarter estimates and Adami would buy it.

Final Trade

The team gives their best and last trade ideas for the show.

  • Macke counsels investors to buy Short Dow30 ProShares (DOG) - Get Report.
  • Adami likes Intel.
  • Finerman recommends Covidien (COV) .
  • Najarian offers up Yahoo! (YHOO) for a play on Alibaba.

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