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) -- The markets meandered Tuesday finishing the worst August in nine years.


Dow Jones Industrial Average

added 4.99, or 0.05%, to 10,014.72 and the

S&P 500

gained 0.41, or 0.04%, to 1,049.33. However, the


dropped 5.94, or 0.28%, to 2,114.03.

It was a poor month for August, which saw the S&P dropping 4.8% for its biggest loss for that month in nine years. Meanwhile, the Dow was off 4.31% while the Nasdaq slid more than 6%.

Tim Seymour said on


's "Fast Money" show that he's looking for the markets to bounce back in the next several days. He expects the battered financial and tech stocks to show some life and is encouraged by the M&A activity.

Joe Terranova said that the markets are still positive for the quarter after an equity rally in July and a correction in August. He believes the downside is limited in the equities because "all the leverage is in fixed income."

For a breakout of some stocks from a recent "Fast Money" TV show,check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

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TheStreet Recommends

3 Stocks I Saw onTV

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Guy Adami said the market can bounce back, and if it does, he liked

Federal Express

(FDX) - Get FedEx Corporation Report

, which recently gave good guidance and trades at a fair valuation.

Peter Schiff, head of Euro Pacific Capital, said the global economy is recovering while the U.S. economy is weakening as government spending is putting the nation deeper in debt. He said the government's misguided policies are continuing to drive gold stocks higher.

Terranova said gold futures historically have tended to appreciate over the next three months of the year.

Simon Hobbs, the moderator of the show, shifted to some of the poorest performing sectors in August. He started off with the financials, which were down over 8% for the month.

Terranova said the financials were hurt by a flattening yield curve and increasing pressure in the capital markets. He said the one stock he liked was


(C) - Get Citigroup Inc. Report


Adami said the banks are in a difficult situation because they need to recapitalize and are hoarding their cash. Steve Grasso said pension funds and mutual funds stepped away from the financials two months ago.

Technology stocks also performed poorly in August, down 7%. Still, Seymour said he would be a buyer of


(INTC) - Get Intel Corporation Report

for its acquisition of Infineon and good outlook. Adami said he liked


(IBM) - Get International Business Machines Corporation Report

and its "great" balance sheet.

Hobbs brought in David levy, an economist with, who had a gloomy view of the economy. He sees corporate profits deteriorating in the third and fourth quarters as the country slips into a recession in 2011.

Hobbs said September has tended to be the worst month of the year for investors. Grasso, though, said August might have been this year's September, adding he expects a market rally into the year's end that will be boosted by the midterm elections.

Shifting to the headlines for Wednesday, Hobbs brought in Colin Gillis, an analyst with BGC Financial, to talk about Apple's much talked about press conference on Wednesday.

Gillis said the highlight of the show will be an iPod Touch with video chat that will use all the Apple apps and allow users to communicate with each other.

The analyst said Apple will probably refresh its iTunes and display what it is doing in TV. He acknowledged the big question for investors is whether


(VZ) - Get Verizon Communications Inc. Report

is picking up the iPhone. He said Apple needs the carrier to compete against the Google Android, which is growing in popularity.

Gillis has a price target of $350 on Apple stock. His other favorite stock in tech is


(MSFT) - Get Microsoft Corporation Report


For headline No. 2, Hobbs referred to China's PMI report, which comes out Wednesday. Seymour expects the report to show manufacturing on the upswing.

Hobbs brought in Farha Aslam, an analyst with Stephens Inc., to talk about the soft commodities like corn and wheat. She said the corn crop looks good in key growing states and that she would be buyers of users of corn like ethanol and protein producers.

Given what happened in August, Gary Kaminsky said one area investors may be wrong in the fourth quarter is discretionary retail. He said they should lighten up retail stocks like

Abercrombie & Fitch

(ANF) - Get Abercrombie & Fitch Company Report



(LULU) - Get lululemon athletica inc. Report


Urban Outfitters

(URBN) - Get Urban Outfitters Inc. Report


In a segment on the passions of the traders on the panel, Terranova talked about his passion for eating right and sticking with organic foods. His favorite organic stocks? They're

Whole Foods Market



Hain Celestial

(HAIN) - Get The Hain Celestial Group Inc. Report


In the final trades, Seymour liked



. Adami said to keep an eye on

Carl Icahn


Lions Gate


. Grasso liked



. And Terranova liked

Dean Foods

(DF) - Get Dean Foods Company Report


--Written by David Tong in San Francisco.

To contact the writer of this article, click here:

David Tong.

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To watch replays of Cramer's video segments, visit the Mad Money page onCNBC


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