'Fast Money' Recap: Meltup Debate

The trading panel discussed whether the market meltup will continue into the second quarter.

Author:: David Tong
Publish date:: Mar 26, 2010 6:13 PM EDT

NEW YORK (

TheStreet

) -- The markets ended mixed Friday amid questions about whether the meltup will continue.

The

Dow Jones Industrial Average

rose 9.15, or 0.08%, to 10,850.36, while the

S&P 500

added 0.86, or 0.07%, to 1,166.59. The

Nasdaq

was down 2l.28, 0.10%, to 2,395.13.

Pete Najarian said on

CNBC

's "Fast Money" TV show that it was a strong week overall, with a great performance from the financials and nowhere near the correction many had been predicting.

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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Anthony Scaramucci said he definitely thinks the meltup will continue because mutual funds tend to "press the accelerator" at the end of the quarter. He said he's looking at

Monsanto

(MON)

, which is down almost 13% year to date, on the assumption that commodities will pick up with the economic recovery.

Tim Seymour agreed with the pick, saying that spending is starting to pick up on fertilizer names.

> > Bull or Bear? Vote in Our Poll

But Joe Terranova, sensing a shift in market momentum, sees limited upside that is causing him to sell the airlines and add to his short of

Goldman Sachs

(GS) - Get Report

Scaramucci said it will be a "total home run for stocks" if there is a pickup in wage growth and consumer activity. He said the mutual funds and hedge funds know that and that is why "you see all this short covering."

As soon as there is a little more clarity on tax and health care policies, small business owners will start to hire, he added.

Terranova said the markets have already priced in 200,000 jobs created in next Friday's jobs report. He said there aren't any quality names are in the markets and the push by mutual funds to pick up laggards is "running out of steam."

Brian Kelly agreed with the other panelists about the heavy amount of short selling in the markets. He said he was shorting a number of stocks, including

Alcoa

(AA) - Get Report

, Goldman Sachs,

Freeport McMoRan

(FCX) - Get Report

and

Aluminum Corp. of China

(ACH) - Get Report

Kelly said the market is extended and looking for the next catalyst. He said he is expected a healthy pullback of about 5 to 10 percent.

Shifting to the Greece bailout, Steve Cortes said he is sticking with his short position on the euro, saying the currency will continue to decline. He also said to avoid the cyclical names like

(MMM) - Get Report

and

Procter & Gamble

(PG) - Get Report

Lee noted reports of

Radio Shack

(RSH)

being an acquisition target, with

Best Buy

(BBY) - Get Report

rumored to be a suitor. Najarian said the rumors have been around quite a while, adding options activity in Radio Shack have been heavy.

Scaramucci doubted whether Best Buy would be interested in a "small box concept." He said a more plausible theory would be for a private equity firm to come in, dress it up and sell it to someone else.

In the final trades, Seymour liked Petrobras

PBR

(YHOO)

. Terranova said to sell

Sears

(SHLD)

Scaramucci was long the dollar while Najarian was long

Lockheed

(LMT) - Get Report

-- Written by David Tong in San Francisco

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

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