'Fast Money' Recap: Nowhere to Go

The trading panel sees very little to be optimistic about in the market.

Author:: TSC Staff
Publish date:: Nov 17, 2008 7:17 PM EST

Dylan Ratigan started off

CNBC's

"Fast Money" show Monday with a discussion of how stocks are near new lows in the credit crisis.

Guy Adami said he thought the

Dow Jones Industrial Average

was going to trade above 9,000 today. "If the Dow closes below 7,800, we will see 6,000 next," he said. The Dow fell 223.73, or 2.6%, to 8273.58 at the close of trading on Monday.

Tim Seymour said there is no reason to act with so much policymaking hanging in the balance. He said, "Europe and Japan are in recession for the first time since World War II."

Pete Najarian pointed out that the financials haven't participated in any of the recent market runs. "The

Financial Select Sector SPDR

(XLF) - Get Report

is at its 52-week lows," he said.

Karen Finerman warned viewers of more pain to come for the financials. As a result, she is short on

BB&T

(BBT) - Get Report

Vornado Realty Trust

(VNO) - Get Report

and

Simon Property Group

(SPG) - Get Report

Najarian noted the

iShares Dow Jones US Real Estate

(IYR) - Get Report

is seeing massive put options activity.

Ratigan reported that the Senate Democratic leadership is proposing $25 billion in aid to bail out the auto sector. Seymour said this is just what the market doesn't want, when there is no volume and no buyers. Adami said shares of

General Motors

(GM) - Get Report

will probably be worthless regardless of the outcome.

Ratigan asked the traders if there is an investment to be made in the oil complex.

Adami said there is no real money to be made in the commodity market. However, he said investors should look at

ConocoPhillips

(COP) - Get Report

for a valuation play and a piggyback play off Warren Buffett's recent stake."

Najarian said

Chevron

(CVX) - Get Report

and

Exxon Mobil

(XOM) - Get Report

could have more downside if oil continues to plunge.

Ratigan mentioned that

Lowe's

(LOW) - Get Report

beat earnings and traded up 4% in after hours trading.

Jon Najarian said he is watching

Limited Brands

(LMT) - Get Report

for a play on its earnings report.

The traders spoke with

CNBC's

Larry Kudlow about the new auto bailout plan and Barrack Obama's plans for the future.

Kudlow said he doesn't like the $25 billion bailout for General Motors. He said General Motors isn't competitive with

Toyota Motor

(TM) - Get Report

and

Honda Motor

(HMC) - Get Report

. He also said he prefers some type of pre-packaged bankruptcy."

Kudlow told viewers the market is disappointed that Obama hasn't announced the new Treasury secretary and whether he will raise taxes in 2009.

"People wanted to be reassured by a moderate to conservative Treasury appointee, and none was forth coming," he said.

More Auto

CNBC's

Phil LeBeau joined the traders to discuss the proposed aid for the automakers. LeBeau said it's his understanding that the $25 billion is for the auto industry, not just GM.

He explained that under the plan, there will be no bonuses for executives making over $250,000 a year and the government wants assurances the automakers have a viable business plan for the future.

Trader Radar

Shares of

Baidu.com

(BIDU) - Get Report

were among the most actively traded stocks on the

Nasdaq

Monday.

Commodities Talk

The traders talked about where the opportunity will be in the market when equity investors put money back to work.

Adami said the money will go back into a lot of the commodity stocks. He says "the problem is it won't go back tomorrow or next week, but will probably happen in January."

He likes

Agrium

(AGU)

Potash

(POT)

and

Archer Daniels

(ADM) - Get Report