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'Fast Money' Recap: Tired Market

Steve Cortes said the market looks tired and advised taking profits.
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) --

The markets managed to finish on a positive note Friday for the second consecutive week.


Dow Jones Industrial Average

added 47.60, or 0.46%, to 10,462.84 and the

S&P 500

gained 5.46, or 0.49%, to 1,109.64. The


rose 6.28, or 0.28%, to 2,242.48.

Joe Terranova said on


's "Fast Money" show that investors should go long energy equity names because oil prices have reached a bottom.

He pointed to such bullish signs as a shutdown in a pipeline that is affecting Midwest refineries, a massive contango in the market and how North Sea Brent trades at a premium to West Texas International.

Steve Cortes said the markets looked kind of tired this week and advised investors to take profits.

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For a breakout of some stocks from a recent "Fast Money" TV show,check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

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Karen Finerman said the today's market action was pretty good but that the rally is a bit long in the tooth. "I won't be surprised to see a bit of a pullback."

She said her hedge fund bought some puts in the Russell 2,000 today because volatility is coming in.

Terranova reiterated his belief that September is "all about maintaining field position." As evidence, he noted a reversal in the Treasury market as yields begin to rise, with the 10-year Treasury bond challenging its 50-day moving average.

The trading panel discussed the implications of Basel III and the efforts of European banks to raise capital. Brian Kelly said the banks would be looking to shore up their capital base with U.S. Treasuries. Patty Edwards pointed out the effort could lead to an economic slowdown that would impact small businesses and consumers.

Melissa Lee, the moderator of the show, shifted the discussion to the selloff in


(PCG) - Get PG&E Corporation Report

following a ruptured pipeline accident in San Bruno, Calif. that killed at least one person and destroyed many homes.

Terranova said he would stay away from the stock because of the uncertainty over how saddled the utility will be from potential liabilities. Cortes went further and said he would stay away from natural gas.

Lee noted that shares of


(NOK) - Get Nokia Oyj Report

were up after it tapped Stephen Elop, the head of Microsoft's business division, to be its new CEO. Terranova said Nokia has a lot of catching up to do, as it has seen its market cap decline 60% since the introduction of the iPhone in June 2007.'

Research In Motion


is another phone company trying to regain momentum. Lee referred to a


report that


(JPM) - Get JPMorgan Chase & Co. Report

and UBS were allowing its employees to use iPhones and Android devices.

Terranova said he was buying some RIMM on a valuation basis even though its momentum is on the downside. Kelly said Research In Motion clearly needs a new strategy.

That's not the case with

Philip Morris International

(PM) - Get Philip Morris International Inc. Report

. Finerman said PM offered value to investors, with a dividend that yields 4.67%. She also referred to comments from its CEO that it was going to deliver cash back to its shareholders.

Lee brought in Brent Hill, an analyst for UBS, to talk about takeover candidates in the tech sector. High on Hill's list are

Red Hat

(RHT) - Get Red Hat, Inc. Report


Citrix Systems

(CTXS) - Get Citrix Systems, Inc. Report

for their critical roles in cloud computing.

He said all the established vendors including


(MSFT) - Get Microsoft Corporation Report



(CSCO) - Get Cisco Systems, Inc. Report

would be interested in them.

Cortes liked the names but said they would be very expensive takeovers because of their high market caps.

In the final trades, Terranova said to be overweight in energy names like

EOG Resources

(EOG) - Get EOG Resources, Inc. Report

. Cortes said to sell gold, while Finerman liked Philip Morris International. Kelly liked

iShares Barclays 20+ Year Treasury Bond ETF

(TLT) - Get iShares 20+ Year Treasury Bond ETF Report


--Written by David Tong in San Francisco.

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