'Fast Money' Recap: Danger Signs - TheStreet

NEW YORK (

TheStreet

) -- The markets slid Tuesday on weak existing home sales and the uncertainty rising from a court ruling against the ban on oil drilling in the Gulf.

The

Dow Jones Industrial Average

fell 148.89, or 1.43%, to 10,293.52, while the

S&P 500

lost 17.89, or 1.61%, to 1,095.31. The

Nasdaq

dropped 27.29, or 1.19%, to 2,261.80.

Pete Najarian said on

CNBC

's "Fast Money" TV show the market started to go downhill after it lost three legs: the financials, led by

Goldman Sachs

(GS) - Get Report

, copper and

Freeport McMoRan

(FCX) - Get Report

and the coal stocks. He also said volatility spiked 8% at the end of the session.

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 onTV

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Joe Terranova said the price action was very disappointing, putting more pressure on the Federal Open Market Committee to address the soft patches of labor and housing on Wednesday.

Tim Seymour was not as dismayed. He said the market has had a couple of down days after 11 straight up days. "The market is a little tired," he said.

Guy Adami said the market is in no man's land and sees it heading downward. He said today's price action was worst than Monday's. And he said the euro is falling to a point where it will reach parity with the dollar.

Brian Kelly said all signs are pointing to a slowdown in the global economy as evidenced in the weak housing sales data, austerity measures, unemployment and a low in the Baltic Dry Index.

Najarian said he would use this opportunity to come up with a list of stocks that he would get into on a pullback, including names like

Union Pacific

(UNP) - Get Report

and

Canadian National

(CNI) - Get Report

.

Melissa Lee, the moderator of the show, said consumer stocks like

Home Depot

(HD) - Get Report

were down today after the weak home sales report.

Adami said it was hard to be bullish on consumer stocks after bank analyst Meredith Whitney's comments about a double-dip recession in housing. Seymour said Home Depot was not a cheap stock, adding a lot of the "good" news had been priced into it.

Brian Kelly said a rising yuan will result in tight margins for U.S. companies that can't raise prices.

Dennis Gartman said the weakness in housing market will continue for some time. He said the situation is not any better in Europe where governments are raising taxes and cutting spending. He said he would short the regional banks because they hold mortgages on their books, adding the best way to accomplish that is through an index.

Apple

(AAPL) - Get Report

, which reported the sale of 3 million iPads since its debut, was one of the few stocks up today. Though he was impressed with the stock's fundamentals and growth potential, Najarian said he took some shares off the table. Terranova did the same, noting he used the stock's end-of-the-quarter strength to get out.

With oil and natural gas prices pulling back, Terranova said he was moving out of natural gas.

Lee brought in Rob MacKenzie, an analyst with FBR Capital Martkets, to comment on a federal judge's decision to block the moratorium on oil drilling in the Gulf of Mexico, and the Obama administration's quick decision to appeal the ruling.

MacKenzie said investors were prematurely enthusiastic about the ruling, but he added it doesn't change anything in the short term. He said the Interior Department has "tons of ways" to stop drilling if the moratorium is lifted.

He said the danger is that the ruling will lead oil companies to perceive that moratorium will drag on indefinitely, causing them to move to other parts of the globe for one to three years.

Under that scenario,

Diamond Offshore

(DO) - Get Report

will suffer in rig-to-rig competition because it is a lower- end rig company, he said.

Anthony Scaramucci offered a bullish view of China's economy. After talking with a China insider and doing some homework in the hedge fund community, he believes China will increase the value of the yuan by 2% to 5% over the next 12 months.

As a result, he's bullish on copper,

Alcoa

(AA) - Get Report

and coal. He particularly likes

Intel

(INTC) - Get Report

, which he says is in a good position to cash in on the demand for chips in China.

Shifting to headlines that might drive the news on Wednesday, Jeffery Harte, an analyst with Sandler O'Neill, said

Jefferies

(JEF) - Get Report

is very well positioned for the world that is developing. He said it has built strong platforms over a number of different businesses.

Harte like

Citigroup

(C) - Get Report

, which he said will be less affected by the financial regulatory overhaul than other banks.

Moving to the tech sector, Najarian said he likes

Akamai

(AKAM) - Get Report

but took some off the table because he felt the valuation was getting too rich.

Mark Mahaney, an analyst with Citigroup Investment Research, said he subscribed to the theory of "rolling thunder" that sees tech companies benefitting from a proliferation of great devices and Internet access. He said Akamai and

Netflix

(NFLX) - Get Report

have benefitted from that roll.

He said

Google

(GOOG) - Get Report

and

Amazon.com

(AMZN) - Get Report

will be the next beneficiaries.

His top pick? It's Google, which Mahaney said will enjoy major growth in the mobile Internet in the second half of this year.

In a chartology lesson, Carter Worth, Oppenheimer's chief technical analyst, said

Apache

(APA) - Get Report

and the

SPDR S&P 500

(APA) - Get Report

are rolling over and heading to the downside.

In the final trades, Seymour said to sell

Banco Santander

( STD). Adami liked Jefferies while Terranova liked

Kroger

(KR) - Get Report

. Najarian liked

Bristol-Myers

(BMY) - Get Report

.

-- Written by David Tong in San Francisco

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

.

"Check out

"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.

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