Friday closed with the bulls taking control of the markets and putting up massive gains leading into the weekend. The
gained a hefty 2.65% to 11,734.32; the
added 2.39%, ending at 1,296.31; while the
packed on 2.48%, finishing at 2,414.10.
"Fast Money" TV show, the traders opened up speaking on today's explosive action.
Discussing commodities, Guy Adami said that commodities are "probably broken for the rest of the year," and that he has believed "in the dollar for a long time." He said that the dollar will continue to go higher and it would be wise to "sell commodities into rallies."
Jeff Macke said to "trade it off the charts," and that "this is a commodity-based rally," that will torture people.
Zachary Karabell said that "this was a big pullback," with "powerful demand."
Karen Finerman weighed in, saying "I wouldn't be long or short here," because there are deflationary pressure on commodities. She said that investors "don't know what's starting the movements."
Adami spoke up, saying that a "six-month commodity downturn is absolutely feasible." He continued saying that things in Europe are much worse off than here. Adami said to look at
because the "valuations are compelling."
Macke said that investors have to "trade the market you have," because you cannot fight the dollar rallies. He said to "get long the commodities."
Shifting to the financials, Finerman said that she "didn't do anything with them today," and she is comfortable with her shorts.
Adami said that
was up 3% today and that it was a powerful move that saw the capitulation. He said that investors should take profit now. Next, he said
American International Group
was ripping 5% and "if you got the trade today, take it off."
Karabell said that he is concerned about the fundamentals surrounding financials and that they "may be at their peak."
, Macke said that he's been loving it but he does not own a share of the stock.
Adami said that the comps for the United States are better-than-expected and that it is a good exit point. He said it is "time to take profit."
Moving to technology plays, Macke said that it is "hard to feel worse," and that this week's action was due to
Adami said to look at
, and to look at its last quarter. He said it was "phenomenal."
Finerman commenting on
, saying that the company had a great week and that the rumored $20 billion buyback "seems like a lot."
Karabell said that tech's productivity numbers "continue to be strong," and that is a big part of Oracle and Cisco.
Guest Dennis Gartman, of The Gartman Letter, came onto the show to discuss this week's movements in the dollar. He said that this week the dollar had unbelievable movements and that there is a huge "bottom built into the dollar," and that you "have to buy weakness in the dollar." Predicting more volatility in the dollar, Gartman said that "volatility is in almost all of the markets." Moving on from there, he said that there is no bullish argument for gold, and that he currently is "not in the gold market anymore."
Next, talking about Beijing plays,
Polo Ralph Lauren
was brought up alongside
Karabell said that these are "gimmicky trades," but "Ralph Lauren is doing real well."
Finerman said to take a look at
because it is more relevant than what is going on with the Olympics. She said itsr numbers were "surprisingly raising."
Macke said that "any excuse is a good excuse to buy Nike." He said it is an extraordinarily run company while Ralph Lauren is "more dependant on a fashion schedule."
Adami said that recently its inventory build numbers killed people, but there is a "nice little double bottom," and it "might be worth a look."
Talking about retailers, the traders questioned whether it is safe to shop again.
Macke said that it is "all about the reaction," and that no one is expecting good numbers from the retailers. He continued, saying that the expectation level with
has been raised and that he is more concerned with his
Finerman admitted she picked up
Abercrombie & Fitch
today, but she warned to be careful.
Adami said that
may have "gotten ahead of itself," but it is wise to "buy on dips."
Karabell weighed in, saying that the "expectations are so low on these," and that stocks have been beaten down. He said it may be a good opportunity to get in.
Shifting to agriculture and rising fertilizer prices, the show welcomed Roger Neshem, the owner of Neshem Farms. Speaking on fertilizer, he said that "we're making plans to cut crops where high input costs are," because margins are being strangled. He said that the company is going to invest more in soybeans because they have lower input costs and his firm's margins will be bigger. Neshem summed up the situation by saying "it's a really tricky game of cat and mouse we're playing."
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This article was written by a staff member of TheStreet.com.