'Fast Money' Recap: Tantalizingly Close - TheStreet

'Fast Money' Recap: Tantalizingly Close

The trading panel discussed how close the S&P got to its 200-day moving average before backing off.
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NEW YORK (

TheStreet

) -- The markets sagged at the end Monday on a downgrade in Greece's debt rating.

The

Dow Jones Industrial Average

lost 20.18, or 0.20%, to 10,190.89, while the

S&P 500

retreated 1.97, or 0.18%, to 1,089.63. The

Nasdaq

gained 0.36, or 0.02%, to 2,243.96.

Joe Terranova said on

CNBC

's "Fast Money" TV show, that he wasn't giving in on the market but that it would basically require an "all in" for the S&P to get above its 200-day moving average in the next few days.

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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Tim Seymour said the market seems range bound in the absence of any news coming out of the European Union. Having said that, he said there are some commodity names that have moved up 20% and rose above their 200-day moving averages.

Guy Adami said investors were getting chopped up today, with the longs getting crushed because "it really felt like we were going to blow through on the upside."

Karen Finerman said all eyes on the BP, with testimony later this week from the CEO of the company.

Terranova and Seymour said a strengthening of the European currencies may be the catalyst to send the market higher.

Melissa Lee, the moderator of the show, commented on gains by the commodities, with oil, copper and natural gas up. Finerman said she is finding herself in a stock she normally doesn't like to trade in:

United States Natural Gas

(UNG) - Get Report

.

Terranoval said there's been a significant unwinding of shorts against natural gas and a capital reallocation from copper, oil and gold to natural gas. Adami said the price action on natural gas has been good, his preference being

Apache

(APA) - Get Report

, which he said is moving up quietly on a benign tape.

Gartman agreed with the comments of several panelists who thought the euro was stabilizing. He said he could see that was the case today when the euro held up to some election results from Belgium. He also said the British pound was also holding up after the British government's austerity measures.

Patty Edwards said she was still gun shy about the market, adding she returned to a hedged position after the S&P "kissed" the 200-day moving average and backed off.

BP's stock got hammered again today, falling 7% ahead of some much anticipated congressional testimony by BP's CEO. Finerman said the testimony is likely to result some more bad PR. She said the stock doesn't trade on the dividend issue anymore. Terranova said there's too much risk on the table to be in BP any more. Mike Khouw said the options activity suggests a 50% chance of a dividend cut or suspension this quarter and a 75% likelihood of it happening in the next quarter.

In a "fast flash" segment, Lee said

SanDisk

(SNDK)

was up 6% in after hours trading, helped undoubtedly from a report that

Apple's

(AAPL) - Get Report

iPad was selling like hot cakes, one every three seconds. Adami said SanDisk's valuation was too rich and that he would prefer

Western Digital

(WDC) - Get Report

and

Seagate

(STX) - Get Report

.

Lee shifted the panel's attention to one of Tuesday's headlines: the long-awaited IPO for the Chicago Board Options Exchange. Jon Najarian said it's a huge deal with 18 investment bankers involved. He said there are two things going for the IPO -- the dramatic rise in options trading and intellectual property.

However, he said the IPO is coming at a time when the market has cooled off and risks being priced already in the upper range.

Another headline maker this week will be

Best Buy's

(BBY) - Get Report

earnings. Finerman said she has long liked the stock on valuation and said it trades in tandem with another of her favorite stocks,

Corning

(GLW) - Get Report

. Terranova also liked Best Buy but said investors might want to wait two weeks and buy it on a pullback.

Lee said coffee soared to a one-year high. Terranova attributed the 10% hike in the last couple of days to cold weather in Brazil that is "killing" the current crop. He said the best play here would be in

Green Mountain Coffee

(GMCR)

, a roaster, which was up 5.7% today, and which has pricing power.

In another play off the news, Lee mentioned a report today that noted as much as $1 trillion in mineral reserves in Afghanistan. Seymour said it was interesting headline, adding he would prefer investing in a company like

Ivanhoe Mines

(IVN)

, which has enormously wealthy mining reserves in Mongolia.

Gartman said investors should be cautious, noting it might be an investment opportunity 10 years from now. He said the news report on Afghanistan will create a circumstance where China and U.S. will be butting heads for some time to come over it.

Is there a bet on the economic impact of the World Cup in South Africa? Seymour said there is but it is difficult for investors to buy individual stocks in that country. He said the best way to get exposure to some of its best companies is through an ETF like

iShares MSCI South Africa

(EZA) - Get Report

.

Lee said the airline index is close to its pre-correction April highs. Edwards said one of the her favorite picks in this space is

Alaska Airlines

(ALK) - Get Report

, a predominantly West Coast airline, which trades at 8.5 times its forward earnings.

Shifting to a look at investment options in the energy space, Lee brought in Darren Horowitz, an analyst with Raymond James, to talk about master limited partnerships as an alternative.

He acknowledged that the sovereign debt market will have an impact on the total return on yield-based equities, including MLPs, but he said the magnitude of the impact from a cost of capital perspective is less than the market perspective.

His best energy MLP picks? They were

Enterprise Products Partners

(EPD) - Get Report

and

Plains All American Pipeline

(PAA) - Get Report

.

There were no final trade picks.

-- 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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