The crew on CNBC's "Fast Money" show Tuesday tangled with whether the stock market has finally seen the worst, or whether it's just resting before the next decline.
Pete Najarian said volatility is starting to subside and there's now a great chance for the
to sit on the sideline. Jeff Macke said to buy the
CBOE Volatility Index
, as this is just the calm before the storm.
Constance Hunter said the yen rallying means the carry trade is still under pressure; she'd also buy the VIX.
Najarian believes the credit worries are now priced into the market and he'd be a buyer of stocks like
Bank of America
(RealMoney Take: Jim Cramer said recently, "The case for Capital One is a compelling one" To read more on what Cramer said,
Crude oil fell below $70 after the hurricane missed key gulf oil platforms. Guy Adami believes oil is getting cheap at these levels as hedge funds have had to liquidate energy stocks recently.
Tech stocks were again some of the strongest performers on Tuesday. Najarian would be a buyer of
Research In Motion
(RealMoney Take: Dan Fitzpatrick recently said, "EMC has been in a steep uptrend for the past year. A strong on-balance volume indicator (a gauge of accumulation vs. distribution) increases the likelihood that this latest pullback is a function of profit-taking rather than an outright rejection of the uptrend." To read more on what Fitzpatrick said,
Adami would buy
and he thinks it goes to $30. Hunter would buy
-- she believes the stock is oversold. Macke likes
to $30 if the consumer isn't dead.
reported a 13% jump in profit and reaffirmed forecasts for the rest of the year. Macke believes specialty retail stocks are screaming buys, and he likes
fell after hours after missing revenue estimates. Najarian said to buy on this opportunistic dip.
China raised interest rates for the fourth time since March as inflation hits 10-year highs. Adami said this raises concerns for the China trade. Hunter said money is being let out of China to go into Hong Kong and the trade is to get long
iShares MSCI Hong Kong Index
. Najarian said to own China up to the Beijing Olympics, then sell it.
Treasury bill yields continue to fall along with Fed fund futures. This action has market speculators thinking the Fed will lower interest rates by the next meeting on Sept. 18. Najarian would be a buyer of
iShares Dow Jones Select Dividend Index
Johnson & Johnson
Adami said to buy
-- it will benefit big time if the Fed cuts rates. Hunter said buy
WisdomTree International Financial
, an ETF that's a play on international financials.
(RealMoney Take: Jim Cramer recently said, "The Goldman short is starting to hurt because of fear that the Fed moves any minute." To read more on what Cramer said,
Macke said the cut is already in the market, and he wouldn't be a buyer of financial stocks, but he would buy techn stocks.
As Goes Target Goes America?
Tossing out economic data, with stores in 47 out of 50 states and $150 million worth of goods sold per day -- is Target the best indicator for economic behavior in America? Macke said Target's earnings looked just fine and the numbers showed the consumer isn't dead.
Is The Energy Trade Over?
With crude oil falling below $70 a barrel Tuesday, is the great bull market in energy finally over? Najarian believes energy stocks are going down more and the put buying on the
Oil Service Holdrs Trust
reconfirms his thinking. Najarian also thinks
is going lower.
(RealMoney Take: Rev Shark recently said, "A bounce in crude isn't helping the Oil Service HOLDRs either, which would seem to indicate that investors want out of the group." To read more on what Rev Shark said,
However, Najarian sees falling oil prices as good for the airline stocks. Adami says one bad thing that could happen is if another major storm actually hits the gulf this time -- that would take crude up to $80. Adami would be a buyer of Exxon on dips and he would buy
. Hunter likes
-- she thinks the stock is cheap.
Trading The Fall Sports Season
Dick's Sporting Goods
, the largest publicly traded sports store, "killed" their earnings on Tuesday. The "Fast Money" crew debated with the CEO of Dick's, Ed Stack, on the best way to play the sports trend.
Stack said the best brands working at Dick's are
(RealMoney Take: Jim Cramer said recently, "Under Armour we know from Dick's is going great guns." To read more on what Cramer said,
Hunter said with Dick's investment in Galaxy Golf she wouldn't be a buyer of Dick's. Everyone else would be a buyer the stock.
Pops & Drops
traded up 4% on positive comments from a UBS analyst. Adami said the analyst is early. (RealMoney Take: Jim Cramer said recently, "When the market catches its breath, it comes back to the same old same old: Apple." To read more on what Cramer said,
popped 11%. Najarian said stay away from this stock.
traded up 8% on news of the company partnering with MTV to take on iTunes. Macke said Real isn't a threat to Apple.
rose 7%, and
jumped 10% as oil fell below $70 a barrel. Hunter said this pop on the airline stocks was nothing but short-covering.
traded up 15% on positive comments from a Baird analyst. Adami said the stock is the hottest IPO this year, but you can't chase it here. (RealMoney Take: Jim Cramer recently said, "you can get good IPOs, like VMWare," To read more on what Cramer said,
traded up 9% after announcing the release date of its much-anticipated BioShock game. Macke said sell this stock -- they can't get their games out on time.
(RealMoney Take: Jim Cramer said recently, "In other words, there's more than just one form of pressure on these funds. There is position pressure -- how do I get out of Take-Two Interactive" To read more on what Kuittinen said,
traded up 4% on no news; Macke said to buy this stock.
popped 4%. Macke said "run away."
Starwood Hotels & Resorts
traded up 4% on speculation that Kirk Kerkorian was taking a stake. Najarian sees interesting options activity, so traders should keep an eye on this one. Drops --
fell 4% after Bank of America downgraded the stock.
dropped 8% after
Philip Morris announced plans to sell its own smokeless tobacco. Najarian believes this is a major problem for UST.
fell 5% as investors worry about the subprime affect on outsourcing with U.S. banks. Hunter said the drop is a buying opportunity.
Macke said sell
into the bounce. Najarian recommended buying
Adami would be a buyer of Target, while Hunter is a buyer of
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