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'Fast Money' Recap: Volatility Is Staying

The crew debates what to do about Goldman.

Word On The Street

The

Dow

plunged 250 points on Friday as a weak jobs report put control back into the hands of the bears. Pete Najarian says volatility is here to stay for a little longer. Guy Adami says the good news is we're not coming off huge valuations, but the bad news is the trend is still lower. Karen Finerman says we have multiple shoes to drop out there and traders need to trade around the tape. Jeff Macke continues to say sell until you can sleep.

Adami thinks this quarter will be a record for

Goldman Sachs

(GS)

. Finerman disagreed, and Macke said they better have record earnings. (RealMoney Take: Jim Cramer said recently, "Nimble people should ring the register. Sell the Goldman and the

Bear

(BSC)

and buy 'em back later." To read more on what Cramer said,

click here.

)

Energy service stocks broke out on Friday as crude oil continues to climb. Najarian says he likes

BJ Services

(BJS)

,

Scroll to Continue

TheStreet Recommends

Halliburton

(HAL)

and

Baker Hughes

(BHI)

. Adami says he is still very bullish on energy here, and Macke said sell crude.

Carter Worth, the chief market technician at Oppenheimer, joined the crew to discuss the action in gold. Worth says the charts are telling him that gold is going higher and he likes

Agnico-Eagle Mines

(AEM)

,

Barrick Gold

(ABX)

and

Newmont Mining

(NEM)

. Adami agrees with Worth, but says be cautious because he thinks a rate cut is already priced into this sector.

The U.S. dollar sank amid fears from the weak jobs report. Adami says if you want to play the weak dollar, buy

Hewlett-Packard

(HPQ)

.

NYSE Euronext

(NYX)

reported record average daily volumes of 3.68B shares in August. Najarian says Goldman Sachs will have a monster quarter off of trading volumes. He also favors

Nymex

(NMX)

and

CME Group

(CME)

. Adami says buy NYSE on dips. (RealMoney Take: Steven Smith recently said, "Options in the New York Mercantile Exchange and the NYSE_Euronext are also likely to be active, as the rumors of the latter acquiring the former take on more credence." To read more on what Smith said,

click here.

)

The India growth story continues, and fast money can still be made. Najarian says play India by getting long

Ericsson

(ERIC)

and

SAP

(SAP)

.

Biotech Trade

Amgen

(AMGN)

has had a tough time all year trending down, but a key FDA ruling is in store for the largest biotech next week. Can the stock recover?

CNBC

pharmaceuticals reporter Mike Huckman joined the crew to discuss the prospect for Amgen and the rest of biotech. Huckman says investors will not know until a FDA vote on Tuesday if a key Amgen anemia drug will have restrictions. Huckman says investors should watch

Amylin

(AMLN)

,

Lilly

(LLY)

and

Alkermes

(ALKS)

.

Najarian is bearish on Amgen, but he favors

Genentech

(DNA)

. (RealMoney Take: Jim Cramer said recently, "Genentech and Amgen have bottomed too, and it looks

Biogen Idec

(BIIB)

is in play." To read more on what Cramer said,

click here.

)

Fannie Trade

Fannie Mae

undefined

a government-sponsored corporation which was created to support lending to home buyers, traded up on Friday while the rest of the financials went down. What is the reason, and what is the trade?

Najarian says that statements from Hank Paulson on Friday took the stock up. Paulson said he was talking with Fannie Mae and

Freddie Mac

undefined

about the problems they face and how they can be fixed. Finerman says now is a good opportunity for both firms, because they can both go in and be a buyer of paper with decent spreads. She wouldn't buy yet, saying she wants to see panic first. Najarian says he would be a buyer of both stocks, and Macke agreed.

How Low Will The Fed Go?

After a disastrous jobs report on Friday the Fed now has even more reason to cut rates at the next meeting on Sept. 18. The futures markets are pricing in a 75% chance that the Fed will cut by half a percentage point.

Macke says the Fed will cut a half, and it won't help. Short the financials on this news. He feels the rate cut is in the market. Finerman says a cut doesn't matter, and other news will play a bigger part. Adami would rather see a 25 point cut.

Pops and Drops

Pops:

Kraft

undefined

traded up 3%. Finerman loves the story.

News Corp.

(NWS)

traded up 3%. Macke says the company will be just fine.

Freeport-McMoRan

(FCX)

popped 4% as gold climbed past $700. Adami still likes the stock, and he thinks it's going to $115.

Drops:

Harley Davidson

(HOG)

fell 10% after cutting earnings guidance. Najarian says stay away.

Apple

(AAPL)

dropped 7% this week after announcing plans to give in-store credits to early buyers of the iPhone. Najarian says they will survive. (RealMoney Take: Cody Willard said recently, "I write on why AAPL and

Google

(GOOG)

and

Adobe

(ADBE)

remain the best plays on the coming disruption of the wireless carriers." To read more on what Willard said,

click here.

)

Krispy Kreme

(KKD)

plunged 41% after its quarterly results. Finerman says that it's a bear market for the stock.

National Beverage

(FIZZ)

fell 12% after disappointing on earnings. Macke says if you're expecting a bounce, forget it.

Wyeth

(WYE)

fell 1% on a negative court ruling. Najarian says don't worry.

Alcoa

(AA)

dropped 3% after a negative note from UBS on the company. Adami likes the stock and he likes that Carl Ichan is dipping his toe in the name.

Home Depot

(HD)

fell 8% on bearish comments from the CEO. Finerman says she likes the stock at this valuation.

Target

(TGT)

dropped 7%. Macke says he told you to sell earlier this week.

General Motors

(GM)

fell 5% after disappointing August sales numbers. (RealMoney Take: Jim Cramer recently said, "GM's cutbacks are daunting." To read more on what Cramer said,

click here.

)

Quicker Than the Ticker

On Aug. 24 Najarian recommended

Juniper

(JNPR)

. He was right and the stock has gone up 6% since his call. On Sept. 5 Finerman picked Kraft. She was right, and Kraft went up 3% the next day. On Sept. 6 Macke recommended selling

Retail HOLDRS

(RTH)

at $100. He was dead on and the RTH fell 2%. On Sept. 5 Adami said buy Biogen. Adami was right, and the stock went up 6% the next day.

(RealMoney Take: Adam Feuerstein said recently, "There has been quite a buzz about Carl Icahn's interest in Biogen Idec. The financier received FTC clearance last week to buy more stock in the biotech firm." To read more on what Feuerstein said,

click here.

)

Fast Fire

Macke recommended

Costco

(COST)

several times in August. Since his recommendation the stock has fallen 11%. Macke now says to buy Costco in the $50's and sell it in the $60's. On Sept. 5 Adami picked

Campbell's Soup

(CPB)

. Since his call the stock has declined 6%. Adami admitted on Friday he was wrong on this call.

On Sept. 4 Finerman recommend getting long

Office Depot

(ODP)

. Since her call, the stock has gone down 18%, and she now says cut your losses and sell the stock. On Sept. 5 Najarian said get in

Research In Motion

(RIMM)

. Since his call the stock has gone down 4%. He is standing by his call and he still likes the company.

Final Trade

Macke says sell the

New York Times

(NYT)

. Adami said short the Dow by buying

Short Dow30 ProShares

(DOG)

. Najarian recommends

Oilsands Quest

(BQI)

as a play on the oil sands of Canada.