NEW YORK (
) -- The markets dipped slightly Tuesday on light volume.
Dow Jones Industrial Average
was down 1.67, or 0.02%, to 10,545.41, while the
fell 1.58, or 0.14%, to 1,126.19. The
fell 2.68, or 0.12%, to 2,288.40.
Bob Pisani, the moderator of
's "Fast Money" TV show, said retail investors are returning to the market but wondered whether they may be buying in at the top.
Steve Grasso said he didn't think they were because he believes the S&P is going to rally from here.
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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Pete Najarian said he believes investors are just trying to average in and position themselves in the market for future rallies.
Steve Cortes said it's still too early to dismiss the demand for Treasuries after today's rather successful $42 billion auction of 5-year notes.
Joe Terranova said the emerging markets remain a good alternative investment as demand for commodities figures to rise in 2010.
Pisani referred to a chart showing the relationship between small caps and the S&P. He said the small caps have been noticeably lagging behind the index, noting small companies have faced considerable credit problems. He said the export-driven recovery favors large companies.
Najarian was optimistic about the market in 2010, saying different legs contributed to this year's rally, including such stalwarts as utilities, industrials, technology and commodities. He agreed with Terranova that the market in 2009 can shift seamlessly into 2010.
Terranova again argued for corn as the "sleeper" among the commodities because of supply constraints in 2010. He also liked what he called the three other legs of the four C's: crude, coal and copper. Najarian said those commodities will be much in demand in emerging markets next year.
Terranova said the "Santa Claus rally" might be in crude this year. He said investors have been right eight out of the past nine years by getting into crude Christmas Eve and getting out on Jan. 6.
Pisani noted housing stocks traded lower on the tepid results from the Case-Shiller index report. Grasso said it's difficult to rationalize investing in housing stocks when there is high unemployment.
Still, Najarian said there are some "aspects" of the housing stocks that are doing well such as
. Cortes said that home improvement stocks are doing well at the expense of the builders.
Pisani brought in Dennis Gartman of the Gartman Letter to talk about the value of technicals for the investor. Gartman said technicals are as important as fundamentals in analyzing a stock.
Gartman said technical movements such as a stock making higher highs, higher lows or breaking through the 50-day average give investors a valuable gauge to read a stock and take appropriate action.
For the "call of the day," Pisani cited a JMP Securities analyst report that pegged a price target of $240 for
Analyst Michael Hecht based his bullish sentiment on a strong outlook for Goldman in fixed income, currencies and commodities, a pickup in M&A and IPO activity, attractive valuation and lower compensation expenses.
Pisani found little new in the report to warrant the price target hike. Cortes, though, said it does matter for investors that 42% to 43% of Goldman's revenue will go to the compensation pool instead of what had been 45% to 46%.
Grasso said Goldman will have to struggle with the flack it has been getting over the bonus issue. Still, Terranova said Goldman is a name investors might consider owning because it's been "unjustly persecuted since its October earnings." Najarian said he saw more upside in
because it has less headaches than Goldman.
Pisani invited Jim Ross, senior managing director for State Street Global Advisors Funds Management, for his ideas of investing in fixed income with ETFs.Instead of sticking to only one basket like Treasuries, Ross said investors should broaden their decision-making by considering U.S. and non-U.S. investments along the credit curve in the fixed income arena.
He said investors willing to take a risk will find it can pay off. He said one of the best performers has been the
SPDR Barclays Capital High Yield Bond
, which is up 11% this year and has enjoyed net flows of $2.2 billion.
For a contrarian view on
, Pisani spoke with Edward Zabitsky, an ACI Research analyst who has a sell rating on the stock.
Zabitsky said carriers can't make money with the iPhone because it is a "bandwidth hog." He also said the other smartphone makers are catching up to what the iPhone has to offer, including its mobile Web platform. He also said the monthly charges for the iPhone are too expensive for customers in emerging markets.
The panel, though, was high on Apple, with its new tablet in the wings and its remarkable ability to innovate over the years.
Pisani brought in Luciano Siracusano, chief investment strategist for WisdomTree Investments, for some new ideas in ETF investing. Siracusano suggested viewers check some of the funds that done well for his company, including
WisdomTree Emerging Markets Small Caps
, which is up 80% this year and
WisdomTree Small Cap Earnings
, which is up 49% this year, and
WisdomTree Dreyfus Emerging Currency
, which is up 8.6% this year.
In the final trades, Terranova liked
, while Cortes said he would short the Aussie dollar. Grasso liked
. Najarian said he liked
-- Written by David Tong in San Francisco
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