NEW YORK (
) -- The markets ended flat Monday on a pullback after a fast start at the opening of the trading session.
Dow Jones Industrial Average
rose 3.32, or 0.03%, to 9509.28, while the
slipped 0.57, or 0.06%, to 1025.56. The
fell 2.92, or 0.14%, to 2017.98.
Pete Najarian said on
's "Fast Money" TV show that the volatility index shows "fear" is not what sent the markets down after an early pop. Rather, he said the index, which is trading above 25, is telling investors to expect a 16-point move a day in the S&P and 35 for the week.
Joe Terranova told investors they should be buyers on what he believes will be a pullback in September and October.
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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Steve Cortes said the Treasury market is "telling us there's trouble ahead." He said the yield on 10-year Treasury notes has been flat since June 30 while the S&P has jumped 100 points.
Jon Najarian said the market is set up now for traders to buy on dips and sell on rallies.
Rick Santelli, the moderator of the show, asked the panel about the "leak" in the financials today. Jon Najarian said it was all about the dash for trash stocks such as
Terranova said investors should be looking to invest in the best-in-breed names like
Santelli asked the panel if there was any life in tech and got a split opinion. Cortes said he is shorting
after seeing the sector underperform in August. Cortes said the sector is too crowded and popular as a trade.
Pete Najarian took exception, arguing it's hard not to like major tech players like
after looking at their balance sheets, cash reserves and their comments about stabilization in their conference calls.
Shifting to oil and the commodities, Terranovea predicted oil, which reached $74 a barrel today, will be the bugaboo for the Obama administration. He said companies are working off their excess inventories of oil, copper and coal.
Pete Najarian added that demand for metallurgical coal is growing in China. He cited the rise, in particular of
from $51 a week ago to above $62 in trading today.
Santelli had a face-off with Larry Kudlow over the direction of the economy. Santelli's point was that the economy is bottoming and showing signs of anemic GDP growth. Kudlow presented the bullish case, arguing that the stock markets in the U.S. and around the globe appear to be responding to a V-shape recovery and a phenomenal upward sloping Treasury curve anchored by zero interest rates.
Kudlow deplored the pessimists for being short-sighted in their view of the economy and sees the S&P heading to 1200. He did acknowledge, though, that job creation is the Achilles Heel in his argument.
Charles Ellis, author of a new book on
, said the investment bank excels because it recruits the best and brightest, instills in them discipline and has them work in a culture that rises to the opportunity.
Phil Lebeau, a
reporter, commented on the dark side of the cash for clunkers program. He said there's a great deal of anxiety in the marketplace, with consumers worried about not getting cars, dealers not getting paid by the government and the plethora of government red tape choking the program.
Terranova said the trade in
is over for the time being and advised investors to move to the sidelines and not be a buyer until the stock is about $6.50. The stock fell 4.26% today to $7.41.
In a segment pitting Jon Najarian against his brother Pete over how to invest in
. Jon took the bullish case, putting his bet on Eddie Lampert's ability to turn around the retailer. He said he would not buy until it's in the mid-$50s. (The stock closed at $63.94, down slightly more than 3% for the day.)
Pete said Sears just can't seem to do anything right as a retailer or in real estate. He said Sears is losing the battle to all the big-box retailers.
In the final trades, Jon Najarian went with
. Terranova liked
. Cortes repeated his trade of shorting the Nasdaq against the S&P. Pete Najarian liked
-- Written by Scott Rutt in Washington
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