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lan Ratigan hosted CNBC's "Fast Money" show Thursday night. He started the show off with a discussion of the wild volatility in the U.S. stock market. Pete Najarian said the volatility is remarkable and investors should expect it to continue for the next couple of days. Joe Terranova explained the market is going through a "digestive process" and trying to make a bottom.

The "Chart of the Day" was the

Dow

. Guy Adami says "the Dow is now in a range between 8300 to 9500." He told viewers to sell options when the Dow goes lower. Karen Finerman mentioned she continues to look for value on the big down days and sell protection on the big up days. She says, "The market is experiencing hedge fund redemptions right now, and once that is over, we can start to focus on fundamentals again."

Ratigan moved the conversation to the big jump in

Google

(GOOG) - Get Free Report

shares after hours. Najarian says "Google blew out everybody's numbers." He said Google controls 72% market share in the search space and the company continues to hire. Adami said Google should trade at a 25 multiple, which would put the stock at $475 per share. Finerman said she loves Google's large cash position. Terranova suggested another reason to buy Google is the rising dollar.

Ratigan asked the traders if there is a trade in the oil market. Terranova says "oil takes the pulse of the global economy." He explained that crude oil didn't see heavy selling pressure when it traded below $70 a barrel and that tells him the deleveraging process is coming to an end. Adami says the best trade in the energy space is gasoline.

Najarian says "

Reliance Steel & Aluminum

(RS) - Get Free Report

and

Nucor

(NUE) - Get Free Report

reported outstanding numbers today." He says the P/E levels on these stocks and

Freeport McMoRan

(FCX) - Get Free Report

are interesting here. Terranova says "natural gas is hanging in there." Adami said Nucor is a buy here on a valuation basis. Najarian told viewers he bought some

Schlumberger

(SLB) - Get Free Report

and sold calls against it with volatility so high.

Ratigan mentioned that well-known hedge funds

Citadel Investment Group

and

Highland Capital Management

are reported to be in trouble. Terranova says "a lot of hedge funds out there haven't seen the crisis we are experiencing right now." He said some of the hedge funds out there don't understand the risk they are taking.

Strategic investor Dennis Gartman joined the traders to discuss the inexperience in the hedge fund community with trading in a high-volatility environment. He says "volatility right now is frightening and unlike anything I have ever seen." He told viewers it was interesting to see people moving into commercial paper today.

Gartman pointed out that some monetary authorities will have to sell gold to raise capital to put back into the banking systems. He said he plans to buy more bank stocks and natural gas trusts and not hedge them as aggressively. He told viewers he owns shares in

Cleveland-Cliffs

(CLF) - Get Free Report

,

CME Group

(CME) - Get Free Report

and

Intercontinental Exchange

(ICE) - Get Free Report

.

Adami said investors should take a look at

Wal-Mart

(WMT) - Get Free Report

. Gartman says "

Apple

(AAPL) - Get Free Report

should be bought because the stock had an outside reversal day."

Rationally Play the Irrational

Jon Najarian joined the gang to discuss how to trade the irrational stock market. He said, "Trade the market you have not the one you wish you had." He told viewers he bought

AK Steel

(AKS) - Get Free Report

,

MetLife

(MET) - Get Free Report

and

MGM Mirage

(MGM) - Get Free Report

at depressed levels and sold calls against them. He says "the bigger the volatility the more premium there is in those options." Adami says "if you take emotion out, then

IBM

(IBM) - Get Free Report

looks like a buy."

Terranova said, "There is no reason

General Mills

(GIS) - Get Free Report

should have went to $56 a share on Monday." Pete Najarian said he likes

Charles Schwab

(SCHW) - Get Free Report

under $25 a share, because "they don't have any exposure to subprime slime."

Bear War

The crew discussed some ways to batter the bear market. Adami mentioned that

United Technologies

(UTX) - Get Free Report

raised guidance for the next quarter. He says, "UTX is cheap trading at 10 times forward earnings." Terranova said he likes

EOG Resources

(EOG) - Get Free Report

for a play on a bottom in natural gas. He says "this stock should get back above $100." Finerman recommended playing

Diageo

(DEO) - Get Free Report

for a play on cash flow, valuation, market position and dividend yield. Najarian suggested

Abbott Laboratories

(ABT) - Get Free Report

. He said ABT just raised its full-year guidance.

Trader Radar

Sherwin-Williams

(SHW) - Get Free Report

was among the most actively traded stocks in the

NYSE

today.

Final Trade

Terranova said he likes

Exxon Mobil

(XOM) - Get Free Report

. Adami says, "I am going to Europe with

Novartis

(NVS) - Get Free Report

." Finerman recommended viewers get long the

Oil Service HOLDRs

(OIH) - Get Free Report

and short the

United States Oil Fund

(USO) - Get Free Report

. Najarian picked

Chesapeake Energy

(CHK) - Get Free Report

.

This article was written by a staff member of TheStreet.com.