Skip to main content

NEW YORK (TheStreet) -- The markets pulled back Monday on worries about China's scaled-economic forecast for 2012.


Dow Jones Industrial Average

fell 14.76, or 0.11%, to 12,962.81. The

S&P 500

dropped 5.30, or 0.39%, to 1364.33. The


fell 25.71, or 0.86%, to 2950.48.

Melissa Lee, the moderator of


's "Fast Money" TV show, led off with China's forecast economic forecast of 7.5% for this year, the lowest since 2004. That was coupled with a Credit Suisse forecast that the commodity supercycle underpinned by China had peaked.

Tim Seymour disagreed with the Credit Suisse report, saying that he still sees evidence for a demand for commodities as China continues its infrastructure buildout and social housing programs. "It's a focused kind of stimulus," he said.

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

3 Stocks I Saw on TV

var config = new Array(); config<BRACKET>"videoId"</BRACKET> =1488963433001; config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player"; config<BRACKET>"autoStart"</BRACKET> = false; config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF"; config<BRACKET>"useOverlayMenu"</BRACKET> = "false"; config<BRACKET>"width"</BRACKET> = 265; config<BRACKET>"height"</BRACKET> = 255; config<BRACKET>"playerId"</BRACKET> = 1243645856; createExperience(config, 8);

Karen Finerman said

Yum! Brands

TheStreet Recommends

(YUM) - Get Yum! Brands, Inc. (YUM) Report

, which has extensive operations in China, was getting kind of expensive and advised against initiating a position in the stock.

Brian Kelly said the prudent course of action would be to move away from stocks with exposure to Asian growth. He said he had sold shares of

iShares MSCI Australia Index ETF

(EWA) - Get iShares MSCI Australia ETF Report


iShares MSCi South Korea Index Fund ETF

(EWY) - Get iShares MSCI South Korea ETF Report


Lee said the today's buzz kill were the coal stocks which got hammered by the 5% decline in natural gas prices. Tim Seymour said that dynamic was reflected in the steep declines in

Patriot Coal


, down 7.96%, and

James River Coal


, down 7.43%.

Adami said he sees

Peabody Energy

(BTU) - Get Peabody Energy Corporation Report

trading down to $25.

Although the oil markets were calm today, Seymour warned of demand destruction as geopolitical tensions between Israel and Iran rachet higher. Adami said he would lean on the short side of




Scott Nations said he saw some integrated names being bought today as implied volatility was very cheap.

Lee brought in Steve Mueller, CEO of

Southwestern Energy

(SWN) - Get Southwestern Energy Company Report

, whose company is encouraging the use of natural gas by providing employees with natural gas-powered vehicles to drive.

Mueller said natural gas, which prices at $2 a gallon, is a fuel that will be great for the country. He said there are 400 natural gas stations that are opened to the public now. He cited a study that shows that $18 billion would build enough CNG stations to reach 70% of the population in the U.S.

In addition to

General Motors

(GM) - Get General Motors Company (GM) Report

, which announced a natural gas powered line of pickups,




(HMC) - Get Honda Motor Co., Ltd. Sponsored ADR Report

are also moving in that direction, he said.

Lee noted that


(IBM) - Get International Business Machines (IBM) Report

broke through $200 today. Finerman said Big Blue is fairly priced and has done a great job. Adami said that IBM has been rewarded for its visibility, although he admitted the stock may be stretched at this price level.

In the Fast Money Portfolio segment, Lee brought in Steve LeBlanc, senior managing directgor for the Teacher Retirement Fund System of Texas, which has enjoyed a handsome return on its private equity investments.

He said the private equity portion of the $110 billion fund is $40 billion, $25 billion of which is fully invested. He said the private equity return in 2011 was 22% and has outperformed the S&P over five and 10 years.

He said the private equity investments have worked so far because the fund has been working with its partners to look for investments that are transparent and feature good governance.

He said he is looking at investments in multifamily housing and value-added office investments in good job-growth areas in the country.

In the currency segment, Amelia Bourdeau, a director at Westpac Institutional Bank, said she was staying clear of the euro until the Friday results of the ECB bank meeting and press conference. She said the Aussie dollar is overvalued and would favor a trade in which she would sell the Aussie dollar against the New Zealand kiwi.

In the Volatility Playbook, Matt Hogan, of Indexuniverse, was highly critical of exchange traded funds that invest in the VIX futures markets. He said these funds dominate the entire market futures and have dictated pricing for outdated volatility, causing the products to lose value.

In the final trades, Seymour recommended

Gold Fields

(GFI) - Get Gold Fields Limited Sponsored ADR Report

. Adami liked

Precision Cast Parts


. Finerman was a seller of

Children's Place

(PLCE) - Get Children's Place, Inc. Report

, while Kelly liked

PowerShares QQQ Trust

(QQQ) - Get Invesco QQQ Trust Report



Written by David Tong in San Francisco.

contact the writer of this article, click here:

David Tong


To submit a news tip, send an email to:


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


Follow on


and become a fan on