'Fast Money' Recap: Gearing Up

The trading panel discussed a game plan for next week.

Author:
David Tong
Publish date:
Feb 5, 2010 7:29 PM EST

NEW YORK (

) -- The markets rallied late Friday after spending much of the trading session digesting an encouraging jobs report against the backdrop of sovereign debt problems in Europe.

The

Dow Jones Industrial Average

rose 10.05, or 0.10%, to 10,012.23 while the

S&P 500

added 3.07, or 0.29%, to 1,066.18. The

Nasdaq

moved up 15.69, or 0.74%, to 2,141.12.

Karen Finerman said on

CNBC

's "Fast Money" TV show that she was pretty optimistic about the last hour of action, adding the market "was looking for an excuse for a bounce."

Pete Najarian said there was a wave of put selling in the last hour of trading as the volatility index dropped 10%.

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 he was going to wait until the storm has passed next week before getting back into the buying mode, perhaps on Monday or Tuesday.

Guy Adami agreed, saying Monday will be the test whether the storm has passed and whether the "Mutual Fund Monday" effect takes hold again.

Shifting to the financials, Najarian said

Goldman Sachs

(GS) - Get Free Report

looks comfortable at the $150 level but seems to have trouble getting to the $160 level.

Finerman said she picked up some

JPMorgan Chase

(JPM) - Get Free Report

, noting the current price level of about $38 is attractive.

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Gary Kaminsky, former managing director of Neuberger Berman, said the signs for the next leg up in the markets will come from a pickup of industrial M&A activity, stabilization of the IPO secondary market and

Fed

chatter of higher interest rates and market absorption of that chatter.

He said Adami was right in calling today a nice bounce back but not the start of the next leg up.

In an email to the trading panel, Doug Kass, a columnist for

TheStreet.com,

said he viewed this week's panic as an end to the market correction. He called the market fears overblown and said the sovereign risk issues should be put in perspective.

Picking up on Kass' comments, Terranova said he'll be looking to buy some high-beta names that were hit hard this week, including

Freeport McMoRan

(FCX) - Get Free Report

, which was up 5.48% today.

Todd Gordon, a technical analyst with Forex.com, said he's looking for a bounce in the euro next week, which he and Adami said would be an opportunity to short the currency.

Melissa Lee, the moderator of the show, remarked that the traditional safe havens such as gold didn't work this week.

Lee brought in Will Landers, senior portfolio manager for Blackrock, to talk about investment opportunities in the emerging markets.

Despite the sovereign debt problems in Europe, Landers said investors should keep an eye on the emerging markets such as those in Latin America and especially Brazil, where he liked materials and consumer stocks.

Using history as a guide, Landers said investors usually will rush back quickly to the emerging markets because such markets like Latin America are fundamentally strong. In particular, he said investors will do well with names like

Petrobras

(PBR) - Get Free Report

Banco Itau

(ITUB) - Get Free Report

, and

Vale

(VALE) - Get Free Report

As for Europe, Landers said the European Union will step in and get the house in order.

Lee asked the panel which stocks were working today. Adami said

Gap

(GPS) - Get Free Report

is doing all the right things. Terranova said he was going to pick up some shares of

Apple

(AAPL) - Get Free Report

, which were also up today. And Najarian said he liked

McDonald's

(MCD) - Get Free Report

and

TJX

(TJX) - Get Free Report

in good and bad markets.

Toyota

(TM) - Get Free Report

was a head-scratcher. The stock was up 4% today, but Finerman was cautious about getting into it. She said she's going to wait until she sees some evidence of how much market share it has lost and what damage has been done to the brand. Terranova echoed that sentiment, saying he's staying away from the stock because congressional hearings into the automaker's problems are going to be underway soon.

As for other safe havens, Terranova liked

PowerShares DB USD Bull

(UUP) - Get Free Report

as a pure play on the dollar. Adami said investors might consider biotech stocks like

Celgene

(CELG) - Get Free Report

. Najarian said a lot of options traders were thinking along the same lines as they dipped into

Gilead Sciences

(GILD) - Get Free Report

and

Amgen

(AMGN) - Get Free Report

Terranova said oil came under a lot of selling pressure before it bounced back at the end of the session. Gordon said there may be some more room to the downside.

Karen Finerman came back from Bill Ackman's Harbor Investment Conference, with some of his picks. They included

Kraft

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, which he liked before and after the

Cadbury

undefined

deal,

Corrections Corp. of America

(CXW) - Get Free Report

and

Borders Group

(BGP)

With Super Bowl Sunday around the corner, David Bank, a RBC Capital Markets analyst, said all the ads have been sold out at the asking price of $3 million on average for a spot.

He said the sellout reflects well on the state of the advertising industry. He also said he would be a buyer of

Viacom

(VIA) - Get Free Report

ahead of next week's earnings.

In the final trades, Terranova said he would be a buyer of Monday's close if it's above Friday's close. Adami said he liked

Cablevision

(CVX) - Get Free Report

. Finerman liked

CVS Caremark

(CVS) - Get Free Report

while Najarian liked

Visa