Recession concerns helped push the S&P 500 to 14-month lows on Wednesday. The Dow finished down 34 points and the NASDAQ closed down 23 points. The crew at CNBC's "Fast Money" analyzed the current bear market and brought in Whitney Tilson and Carter Worth to get their points of view.

Karen Finerman thinks the selloff is getting over done and she disclosed she bought Tesoro ( TSO) Wednesday. She also disclosed she bought options for the Morgan Stanley Retail Index that expire Friday. Finerman worries that the jobless claims could really hurt the retailers. Jeff Macke mentioned that financials and retail stocks were strong on Wednesday, but the market couldn't rally. To Macke, this means the market is facing bigger issues. Pete Najarian disclosed he took off a long put position in the refiners.

Hedge Fund Managers Defense Picks

Whitney Tilson, Founder and Managing Partner of T2 Partners joined the "Fast Money" crew to discuss his defensive stock picks for this tough market. Tilson explained that he is seeing opportunities in this market that could be the best he's seen since late 2002. He offered up 3 defensive stock picks that investors should consider. The three picks were Berkshire Hathaway ( BRK.A), Fairfax Financial Holdings ( FFH) and MacDonald's ( MCD).

(Take a look at this defensive portfolio on Defensive Plays.)

Chartology with Carter Worth

Oppenheimer Chief Market Technician Carter Worth joined the "Fast Money" crew to discuss his take on the markets. Worth mentioned that the charts on the S&P 500 are suggesting to him that the index is getting ready to break much lower to about 1300 in the coming months. He explained that the market leading stocks like Google ( GOOG), Apple ( AAPL) and Research In Motion ( RIMM) are breaking down. Worth went on to explain that the S&P 500 should be making new highs off of each rally if we're in a bull market. He also doesn't think that a rate cut can save the market here. Najarian agrees with Worth and he feels the market is in for a very big volatile move.

Fallen Angels

Ten percent of the S&P 500 stocks are off 50% or more from 52-week highs. The "Fast Money" crew put together a list of stocks called "fallen angels" that could make for a good trade. Macke recommends building a position in Darden Restaurants ( DRI). He also likes "fallen angels" Coach ( COH) and Crocs ( CROX) which he feels trade at reasonable valuations. Finerman disclosed she is long CROX. Adami likes Akamai ( AKAM) and he doesn't believe the rumors that they will lose contracts with Apple. Najarian favors King Pharmaceuticals ( KG).

Dylan Ratigan explained that a new study from the New England Journal of Medicine suggests the makers of antidepressants never published the results of about a third of the drug trials that they conducted in order to win government approval. Najarian thinks the news could move Pfizer ( PFE). Macke warns that if you own any of the companies that make antidepressants do nothing until more information comes out.

Submerging Markets

Emerging market stocks took a beating on Wednesday. Adami mentioned that Bank of America raised price targets on hot rolled steel for 2008. He thinks that is bullish news long term for United States Steel ( X), but he is more cautious short term. Macke sees much more pain coming for the emerging market names and would get out of all the emerging market names. Najarian noted that put volume on the Material SPDR ( XLB) was heavy Tuesday and Wednesday. He suggested that traders are buying the higher strike and selling the lower strike which could mean the global story is in trouble.

AG Stocks

The stock market bears finally took the beating to the agriculture stocks Wednesday. Macke explained that the agriculture stocks are perfectly fine companies, but in a bear market you can't hide in these stocks. He feels that names like Monsanto ( MON) are going to roll over in a hard way. Finerman doesn't think the selling has even started in the ag sector. In Adami's opinion, the valuations in the ag space are too high. He recommends looking at Dupont ( DD) which trades at 13 times earnings.

Najarian suggests shorting Monsanto and going long Mosaic ( MOS). He also thinks that Dupont and Anderson ( ANDE) could be safe places to hide in the ag sector.

Pops & Drops

Pops - Mattel ( MAT) traded up 8% after Needham & Co. upgraded the toy maker. Macke cautions investors as he thinks Mattel is facing more headwinds in the coming quarters.

Boeing ( BA) traded up 3%. Adami likes the cheap valuation at Boeing and he would buy the stock.

Wal-Mart ( WMT) traded up 1% on no news. Finerman mentioned that WMT has done well in a tough tape.

Sun Microsystems ( JAVA) traded up 4% after the firm announced it will buy software firm MySQL for $1 billion. Macke would hit the exit ramp with JAVA.

Linear Technology Corp ( LLTC) traded up 4% after the chipmaker beat Wall Street estimates and raised its dividend. According to Najarian, this was an opportunity to sell LLTC.

Starbucks ( SBUX) traded up 2% after the coffee chain said it would stop selling organic milk, but will now sell Pepsi's Naked Juice products. Macke likes SBUX.

Drops - Quicksilver ( ZQK) fell 5% after the retailer said it sees a larger-than-expected first-quarter loss. Najarian explained that retail is dying and ZQK is having a tough time.

California Pizza Kitchen ( CPKI) fell 18% after the pizza chain cut its fourth-quarter and 2008 outlook. Finerman points out that cheese prices are hurting CPKI.

Scientific Games Corp ( SGMS) plunged 31% after Morgan Stanley downgraded the lottery machine maker. Adami explained SGMS has lost 3 contracts in a month. He expects the stock to go lower and would sell it.

Apple ( AAPL) fell 6% after Steve Jobs failed to excite investors at Macworld. Najarian explained that if you want to play Apple use a call spread.

Google ( GOOG) fell 3% on no news. Adami predicts that earnings on January 31st will be the next catalyst.

Conoco Phillips ( COP) fell 4% as crude oil traded down to $90. Finerman feels COP is a worth a look at these levels.

Final Trade

The team passes along trades they think will make their viewers money.
  • Macke advises buying Pfizer (PFE) on the dip Thursday morning.
  • Adami recommends Johnson & Johnson (JNJ).
  • Finerman thinks Lehman Brothers Holdings (LEH) is a short off the Ambac Financial Group (ABK) news.
  • Najarian favors Tibco Software (TIBX).
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