Dylan Ratigan started CNBC's "Fast Money," program on Monday by stating Jeff Macke told him before the show that "you should be happy on how the market reacted today." Ratigan then brought up how companies such as DryShips (DRYS) - Get Report, Freeport-McMoRan (FCX) - Get Report and Mosaic (MOS) - Get Report all took a hit today, along with crude oil, which fell $3.95, or 3.37%, to $121.15.
Jeff Macke mentioned how he has said quite a few times before that the rally has been broken. He advises to be very careful in the markets, since it is quite bearish. He also commented on how fertilizer companies "rolled over" as well as oil and coal companies as crude oil fell.
Guy Adami brought up how
United States Steel
reported "good earnings but then the stock was down. He said that is a sign for everybody, when good news cannot move a stock higher, stating it is a very difficult environment in the stock market.
Karen Finerman mentioned how investors should use some sort of protection in the financials, options being a good way on positioning investors from the upside and downside depending which side of the trade you are in -- long or short.
Macke commented on what John Thain, CEO of Merrill Lynch, said when interviewed by Maria Bartiromo -- that he would not raise any more capital if the current environment remains the same. As a result, Macke does not feel convinced to buy into financials.
Regarding emerging markets, Macke does not find emerging markets attractive right now for investors.
Dan Fitzpatrick, president of Stockmarketmentor.com, came on the show and recommends investors buy IPO companies trading "under the radar." One IPO company he suggests is
Macke and Finerman are not convinced on buying IPO companies considering the markets' unfavorable trading patterns.
Ratigan mentioned how
Procter & Gamble
will be reporting earnings tomorrow. He went on stating he does not feel the
will raise rates tomorrow.
Michael Darda, chief economist of MKM Partners, mentioned how he feels the Fed will be dovish tomorrow simply because they have no other choice. The Federal Reserve cannot raise interest rates due to the distress in the financial markets and lowering rates is not possible as a result of uncomfortable levels of inflation. Darda then showed a chart he created on how borrowing in the Fed discount window has been increasing -- he shows that the distress in the financial markets is not alleviating as of yet.
Later in the show, Jon Najarian, cofounder of Optionmonster.com, joined the program. He discussed the options activity with Cisco. He mentioned there was no unusual options activity, but he did notice people were buying positions for October. He said this demonstrates people are "moderately bullish" and feel the stock could trade relatively flat for a few more months.
Adami commented on Cisco, stating "the stock is valued relatively nicely and trades at an attractive price." However, he said he is worried that the company's chief executive officer might mention something that could drop.
Finerman did some research regarding the financing problems regarding Chrysler and feels
could face some trouble from auto finance loans that is not priced into the stock. She advises to avoid this company.
Ratigan reported breaking news that the CEO of
, Mel Karmazin, bought 2 million shares.
simply too undervalued at its current share price. She mentioned the company's "huge cash flow, impenetrable balance sheet" and low valuation make this stock worth buying.
George Fellows came on the show to state reasons why people should remain bullish on his company,
. As CEO of the company, he remains positive the company will continue to generate strong profits -- especially from abroad -- that will offset the softness in the US market. The company reported its second quarter on July 31, earning 58 cents compared to 53 cents a share a year earlier.
This article was written by a staff member of TheStreet.com.