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'Fast Money' Recap: Heading Sideways

The trading panel looks at Trinity and other stocks that withstood a tough day.

Stocks in New York finished in negative-land Tuesday as oil reached a new record and several big names offered bad tidings on the earnings front. The Dow lost 1.5%, the S&P 500 fell 0.9% and the Nasdaq was off 1%.



"Fast Money" TV show, Joe Terranova said that producer price index numbers show that the consumer is hurting. Without a consumer, we've got a problem, he said. He predicted that the market would consolidate from here, pointing out that the S&P 500 bounced down below its 200-day moving average.

Jeff Macke said the consumer information was an excuse to sell. He praised oil and gas magnate T. Boone Pickens for recognizing that oil will go higher from here and getting in on the long side.

Najarian said that


(AIG) - Get American International Group, Inc. Report

was partially responsible for the market's downturn. He said that with oil near $130 a barrel and gasoline going higher, the economy faces serious trouble this summer.

Terranova said the markets will likely trade sideways from here. He said the

Federal Reserve

is unlikely to raise interest rates because the consumer is in trouble. Macke agreed that the market will trade sideways from here.

3 Stocks I Saw on TV

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Shakeout Survivors

Guy Adami said that today marked an occasion to separate the wheat from the chaff. He said that some stocks remained strong on the down day. He said he likes

Trinity Industries

(TRN) - Get Trinity Industries, Inc. Report

TheStreet Recommends

on today's performance.

Najarian said that tech names


(AAPL) - Get Apple Inc. Report


Research In Motion




(GOOG) - Get Alphabet Inc. Class C Report

are working.

Oil Pressure Still Rising

Terranova said the rise in oil isn't just speculation. He pointed out that further out at the "back of the board," futures are pricing crude at $140 a barrel. He said the rise in oil is all about supply. Macke said it's not a good idea to short oil.

Terranova advised viewers to get into the drillers. Najarian pointed investors to the

Oil Services HOLDRs

(OIH) - Get VanEck Oil Services ETF Report

. He said the refiners will not turn for a while.

They Go to Rio

Brazil stocks, as tracked by the

iShares MSCI Brazil

(EWZ) - Get iShares MSCI Brazil ETF Report

showed gains today. Terranova said that countries that import machinery from the U.S. are a good place to play. Macke said that if the U.S. heads for recession, Brazil will also suffer.

Najarian pointed out that other emerging markets didn't fare as well as Brazil.

Shares of

Home Depot

(HD) - Get Home Depot, Inc. Report

went down today despite a solid earnings report from the company. Macke said the hard trade is to get long here. He said he likes the long side here because it's painful.

Najarian said that Macke is right, provided that the housing market is ready to turn. Because he is skeptical of that, he said, he cautioned against getting into Home Depot or


(LOW) - Get Lowe's Companies, Inc. Report


Circling the Wagons

T. Boone Pickens bought 10 million shares of



today. He joins Carl Icahn and other very rich men in an effort to negotiate a deal between the Internet company and


(MSFT) - Get Microsoft Corporation Report


Macke said he doesn't want to be long Yahoo! on this news. Terranova said he agrees with Adami's previous recommendation of Google as a trade on the Microsoft-Yahoo! battle.

The Buck Gets Bruised

In commodities, gold jumped in price today, and the dollar suffered. Terranova said that the dollar is in a trading range here. He said the Canadian dollar may be a good trade on this news. Adami said that Germany's producer price data killed the U.S. dollar, but he thinks that the central banks in Europe will have to cut rates at some point. He said two good commodity plays are


(FCX) - Get Freeport-McMoRan, Inc. Report


U.S. Steel

(X) - Get United States Steel Corporation Report


Adami also said


(CHK) - Get Chesapeake Energy Corporation Report



(NUE) - Get Nucor Corporation Report

are issuing stock in secondary offerings. He said normally this is bad news, but he recommends buying Nucor's secondary.

Najarian said he believes natural gas has room to the upside. He urged investors not to fight breakouts in names like


(COP) - Get ConocoPhillips Report

. He said coal names are looking bullish as well.

Jon Najarian joined the show to talk about put activity in the financials. He said there is heavy put volume in the

Financial Select Sector SPDR

(XLF) - Get Financial Select Sector SPDR Fund Report

. He said he doesn't think investors are merely protecting long positions from the downside. He said he thinks the financials will trade sideways from here. He also said emerging markets appear to be rolling over.

The traders discussed ways to play oil without going directly to the sector. Joe Terranova said

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. Report

has the best collection of oil traders around. Najarian agreed. Adami said Trinity Industries and


(HXL) - Get Hexcel Corporation Report

are good plays on wind. He also recommended


(HAL) - Get Halliburton Company Report


Hot Couch Potatoes

Macke said that oil prices will keep people at home, so he recommended some couch-potato trades, including


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Yum! Brands

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


Najarian said he disagrees with Macke, saying that those trades play into expensive commodities.

Stealth Solar

The traders then discussed the possibilities for


(DD) - Get DuPont de Nemours, Inc. Report

. Najarian said it's an under-the-radar energy play. He said that the company has adapted recently and has promising exposure to photovoltaic technology.

He said that recent positive earnings from

First Solar

(FSLR) - Get First Solar, Inc. Report


Energy Conversion Devices



Canadian Solar

(CSIQ) - Get Canadian Solar Inc. Report

mean that DuPont's PV segment will probably get bigger as time goes on.

Adami said DuPont adapts better than any other company and is still cheap on a valuation basis. Macke said it's a better play than the solar-specific stocks.

Selective Inflation

The traders then spoke with River Twice Research President Zach Karabell about trading inflation. Karabell said that inflation isn't occurring across the board. He said that items that are purchased often are experiencing price increases, whereas low-frequency items are actually experiencing falling prices.

He urged investors to look into irreplaceable inputs, such as iron ore, which leads to stocks such as


(RIO) - Get Rio Tinto Plc Report



(CLF) - Get Cleveland-Cliffs Inc Report


Brands can also be irreplaceable inputs, he said. Stocks with powerful brands like Apple,





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should do well in this environment, he said.

Trader Radar


(SYMC) - Get Symantec Corporation Report

traded on extraordinary volume today.

Again speaking of plays on summertime activities, the traders discussed some stocks that might benefit from consumers' propensity to barbecue during that time of year. Najarian recommended


(CLX) - Get Clorox Company Report

, which owns Kingsford Charcoal. Terranova said


(CROX) - Get Crocs, Inc. Report

might be a good play as the company attempts to get women to wear its shoes.

Adami said

Suburban Propane

(SPH) - Get Suburban Propane Partners, L.P. Report

is interesting on a valuation basis. Macke said investors should look at Wal-Mart.

Fast Messages

One viewer asked the traders what was going on in gold. Adami recommended buying Freeport-McMoRan and said he thought the recent rise in gold was a short-covering rally.

Macke counseled another viewer against buying stock in PC companies, saying the sector has had a good run, and it was time to sell when Wall Street analysts went positive on the sector.

Najarian told a third viewer he believes it's OK to buy shipping stocks but recommended following the companies' pricing for their services to better play the sector.

Another viewer had all his money in energy stocks. Terranova recommended taking some profits.

Final Trade

Macke said to buy SPDRs with a tight stop. Adami recommended

Public Service Enterprise Group

(PEG) - Get Public Service Enterprise Group Inc Report

. Najarian chose

Excel Maritime