'Fast Money' Recap: Bank on Financial ETFs

Traders say if you want to get into banks, Proshares Trust Ultra Financial, or any of the ETFs, are the safest way.
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"This has been the best week since April 18," traders said on CNBC's "Fast Money" TV show.

Melissa Lee, in for Ratigan, asked the traders, "Is this what a market bottom looks like?"

Jeff Macke said, "Yes, this is a bottom; but is this THE bottom? Probably not." Financials with help from the government got us started on a small rally, but we will see very soon how this all plays out.

Najarian stated that

Wells Fargo

(WFC) - Get Report

pushed into gear this week and


(JPM) - Get Report

helped out.

Fannie Mae


Freddie Mac

"took an impressive turn and suddenly they don't look quite so bad." That was incredible, and this week was a story of rotation, Najarian said.

Karen Finerman said that if "Fannie and Freddie can get the public markets to bail them out, it will be better for them." She advises that the government bailing them out will be bad for the stocks and hurt them in the end.


(C) - Get Report

earnings, or lack there of, weren't bad, but were not that great either, Finerman added.

Joe Terranova added that the "banks just need time to unwind this credit crisis." They cant liquidate at this time, but expectations within the market are extremely low.

Najarian said that if you are looking for a way into the financials, take

Proshares Trust Ultra Financial

(UYG) - Get Report

, or any of the ETFs, as these are the safest bet.

Macke said that the lesson of this week is, if you have been "through this kind of market, you should know that you have time." So, wait this out for the right time to buy.

Lee then moved the group on to crude, as it was down to $129 on the day.

Macke said, "We have broke some important support. The technical uptrend is gone." Lots of big traders are getting out, Macke said, as "the trend is broken, and you won't get rich fighting the trend."

Terranova added that "at this level, there is a lot of talk $80 oil, but this isn't necessarily true." However, there are definitely "ways to play this market as it goes lower."

Moving on to

General Motors

(GM) - Get Report

, Najarian said that "every time you see a pullback in oil, GM and airline stocks will gain. That's the way to play oil right now." You have to keep an eye on these stocks and get in and get out quick, Najarian said.

Macke disagreed and said the stock is "still going bankrupt in the big picture."

Shifting gears, the traders moved on to tech stocks


(MSFT) - Get Report



(GOOG) - Get Report

. Najarian stated that Microsoft has done nothing this year, "but take a look at


(IBM) - Get Report

, they are now what Microsoft once was." IBM seems to be doing things right, turning profits and acquisitions into something good, Najarian said.

Finerman says Microsoft looks good. At this valuation, "I would buy it here," she said.

Macke disagrees and stated that Microsoft "is a big dumb conglomerate that has done less with more."

Morgan Keegan analyst Bob Patten then joined the show to talk about the sudden rally in financials.

We would like to think this rally is sustainable, Patten said, but "this is the biggest government-induced financial short-squeeze we have ever seen." Earnings weren't that good, they were just "less bad," with all the major banks, he added. The shorts have been ridden all the way down, but we need housing to stabilize and this is just not happening. You cannot be long banks yet.

Switching over to


(AAPL) - Get Report

, Lee stated that the tech sector was pummeled today and asked whether Apple can save the tech sector.

Najarian said, Apple will likely beat expectations, but " what you really need to look at is



. It could be setting up to beat earnings and revenue. "Love them at $17 a share," he said. Coming back to Apple, Najarian added that smart phones are definitely hot right now "and Apple is in the driver's seat." I like going into these earnings, "given what Apple will probably say."

Within the energy sector the traders then discussed


(HAL) - Get Report


Najarian said, "I like everyone who comes out in this sector and I like what's going on right now."

Macke warned that "you can trade them but you have to have an exit plan with these stocks right now." We have broken the upward trend and this "is very volatile market right now."

Discussing the future of Wall Street, Charlie Gasparino joined the show and was asked, "Will the independent investment bank survive right now?" No, they can't take on risk because they have been downgraded. They need to merge, but where are the banks to buy them right now? "Plus we are probably going to get some more writedowns from




Merrill Lynch


, and

Morgan Stanley

(MS) - Get Report


Macke added that "the problem with the merging scenario, though, is that none of these banks will sell."

Gasparino believes "these three banks have no way to make money in the markets in the future" and they need to start looking for ways to take in more revenue.

Ending the show with movie theater stocks, the traders were joined by


(CNK) - Get Report

CEO Alan Stock who said the economy has added fears to our sector, but we have never been stronger. "I am not sure why the stock has been depressed this summer. We have done surprisingly well and ticket sales are not down," Stock said. Movies have performed well. Regarding the family and fun movies, people just want to go see them. The price at the pump is not affecting our overall business, he added.

This article was written by a staff member of TheStreet.com.