'Fast Money' Recap: Tactical Trades - TheStreet

NEW YORK (

TheStreet

) -- The markets continued to be rattled Friday by events in Europe and China.

The

Dow Jones Industrial Average

fell 47.01, or 0.46%, to 10,097.18 while the

S&P 500

dropped 3.0, or 0.28%, to 1,075.47. The

Nasdaq

rose 6.12, or 0.28%, to 2,183.53.

Gary Kaminsky said on

CNBC

's "Fast Money" TV show that investors should be prepared to have stocks in their portfolios that benefit from a rising interest-rate environment. He also said corporate bonds would work so long as "you're in the right names."

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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Guy Adami said a "cocktail" of forces, from China's attempts to rein in lending to the efforts to rescue Greece, is going to drive the markets lower despite today's good market price action.

Karen Finerman said she was expecting a selloff before the long holiday weekend but was surprised to see the market wanting to come back. "There's a lot of noise out there but I actually think fundamentals are improving."

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Joe Terranova said the move by central banks in Australia, Israel and China to raise interest rates is a "good thing" and will help pave the way for growth.

Kaminsky sounded a more cautionary note, noting Bernanke's move to raise interest rates is different this time around because it follows the lead of other countries like China and Australia that have hiked rates.

On the prop desk, Brian Kelly, founder of Kanundrum Capital, painted an encouraging picture of the euro, arguing that it would take half of the eurozone to default for the currency to break down. For that reason, he said he was buying Greece banks.

Kaminsky had a much more dire outlook. He said the European banks will be negatively affected by the bailout of Greece.

China's renewed efforts to rein in lending has been the other dominating overseas story affected the markets. Terranova said there is no doubt in his mind that China is "slamming on the brakes." As a result, the commodity story has changed with oil being his favorite pick, he said.

Adami said

Freeport McMoRan

(FCX) - Get Report

, which he described as "everyone's go-to stock for global growth," has done a nice reversal after a breakdown two weeks ago. He said he would wait for the stock to reach $75.50 for a little more clarity, at which point he said investors could make bullish or bearish moves.

Melissa Lee, the moderator of the show, brought in Charles Kantor, senior vice president of of Neuberger Berman, about investing in this market. He said his firm focuses on companies that can that grow regardless of the environment. That means companies that show revenue and earnings growth along with margin expansion and high returns on capital.

He said he liked

Visa

(V) - Get Report

in this regard.

Is China in the midst of a bubble? Zachary Karabell, president of River Twice Research, took issue with the way China is being portrayed in the media. He said China is not in the midst of a bubble. Rather, he said the country is experiencing "pockets of inefficiency" in what has been an "overall growth story."

He said the bears are distorting the situation by wrongly viewing China in terms of the Internet and U.S. housing bubbles in the U.S.

As for his trading philosophy, Karabell's basis thesis is "to buy what China buys." He likes stocks like

Vale

(VALE) - Get Report

,

Cisco

(CSCO) - Get Report

and

Fluor

(FLR) - Get Report

. He also said he favored plays in infrastructure, raw materials inputs and retail names like

China Mobile

.

The

Baby Berkshires

(BRK.B) - Get Report

joined the S&P 500 index today. Kaminsky took a dim view of the 50-1 split, saying that Warren Buffet went back on one of his cardinal rules about stock splits in order to do the

Burlington Northern Santa Fe

( BNI) deal.

Finerman argued the split itself wasn't that important as is the value of the shares after the split.

Looking at some tech earnings next week, Mike Khouw, a senior options trader with Cantor Fitzgerald, said he doesn't expect much from either

Dell

(DELL) - Get Report

or

Hewlett-Packard

(HP) - Get Report

.

Adami said he was close to selling

Intel

(INTC) - Get Report

, while Kaminsky said there's no reason why Dell won't disappoint again in its earnings report.

Overall, Terranova said tech is still the place to be in an uncertain market. He said it would be wrong to toss it to the sidelines.

In the final trades, Kelly liked

VMware

(VMW) - Get Report

; Kaminsky liked

Expeditors International

(EXPD) - Get Report

; Adami liked

Enbridge Partners

(ENB) - Get Report

; Finerman liked

JPMorgan Chase

(JPM) - Get Report

; and Terranova said

Palm

( PALM) looked interesting.

-- Written by David Tong in San Francisco

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

.

"Check out

"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.

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