The Dow closed down 77 points as Wall Street traded cautiously in front of the Federal Reserve meeting set for Wednesday. The crew at CNBC's "Fast Money" tried to make sense of the market for its viewers.
Rude CrudeCrude oil declined 3% Tuesday as investors now fear that the global growth story might be in jeopardy. A large short position is building in crude, so is now the time to sell? Karen Finerman declares that if you feel the US economy is going to slow down, then demand for oil will also drop. She would look to short the United States Oil Fund ( USO). Additionally, Guy Adami points out that shorting Exxon Mobil ( XOM) ahead of earnings is a gutsy trade that could pay off big. On a valuation basis Exxon is very expensive. Pete Najarian remarks that he saw a lot of put buying in the oil space on Tuesday. However, Jeff Macke retorts that the short oil position is almost a long dollar position, and in that case it might not be the best idea. Dylan Ratigan mentions one more way to short oil is to buy the UltraShort Oil & Gas ProShares ( DUG).
Tech TalkAdami liked hearing that Dell ( DELL) is announcing a big buyback, while the stock is at a 52 week high. In Finerman's opinion, valuations aren't that rich and companies see value in their own stocks. Najarian says this plays well for Dell, as well as Apple ( AAPL), Hewlett-Packard ( HPQ) and Microsoft ( MSFT). He maintains that the PC story is working and the chips are starting to bounce.
Stocks Featured on Fast Money, Mad Money