Wall Street experienced some wild swings on Wednesday, with the Dow Jones Industrial Average swinging 600 points. The Dow finished the day up 298 points and the Nasdaq closed up 24 points.

Pete Najarian said the rally Wednesday was due to the prospect of a government bailout of the bond insurers and rumors of a rate cut out of the European Central Bank.

He says the markets will remain volatile for the next couple of weeks. According to Jeff Macke, now is the right time to buy the financials and retailers for a trade.

Guy Adami agreed with Macke on the financials, and he explained that investors can't fight the Fed.

Karen Finerman said she had a fun day Wednesday. She disclosed she bought Altria ( MO) and Flowserve ( FLS) in the morning after both stocks were knocked down hard.

Google ( GOOG) and Apple ( AAPL) plunged as the Nasdaq traded higher Wednesday. Adami says now is the chance to make an easy trade and buy Google with a stop at $513.

Najarian disclosed that he added to a long position in Apple. Adami says now is the time to buy Apple after he saw the volume and the reversal he was looking for in the stock. Finerman mentioned she is getting close to taking a look at Apple for a value play.

Retail stocks put in a strong performance, led by Wal-Mart ( WMT), Target ( TGT) and Home Depot ( HD). Macke liked the price action in Wal-Mart Wednesday and he thinks the stock has its momentum back. Finerman disclosed she sold many of her retail stocks into strength. Najarian says the strength in retail was an opportunity to sell. Adami recommends taking profits in Home Depot. Pfizer ( PFE) reported profits and sales that beat forecasts. According to Najarian, investors can look to buy Pfizer, Abbott Labs ( ABT), Johnson & Johnson ( JNJ) and Merck ( MRK). Adami favors Pfizer.

Railroad and trucking stocks surged in the face of recession concerns. Najarian says the selling in YRC Worldwide ( YRCW) has been overdone. He explained that strong earnings are helping to lift railroad stocks like CSX ( CSX), Burlington Northern ( BNI) and Norfolk Southern ( NSC). Adami mentioned that the railroad stocks are a synthetic way to play the agriculture sector. He cautioned investors to take some off the table in the rails.

Commodity Stock Plays

Commodity stocks have been selling off heavily as investors fear a global recession could be in the cards. What is the trade?

Mike Dudas, metals, mining and construction analyst at Bear Stearns, joined the "Fast Money" crew to give his take on the commodity sector. According to Dudas, institutional investors have been selling everything leveraged to global growth.

He went on to explain that he has been talking to companies he covers for Bear Stearns, and they aren't seeing signs of a global recession. Dudas recommends buying Newmont Mining ( NEM), Materials Select Sector SPDR ( XLB) and Freeport-McMoRan ( FCX).

ECB Trade

Tim Seymour joined the "Fast Money" crew to discuss his trade ideas if the European Central Bank decides to cut interest rates. Seymour believes the ECB is behind the curve on interest rates. He explained that interest rates in most of Europe are a lot higher than they are in the U.S. Seymour believes the reason for this is because they are targeting growth and not inflation or asset prices. He feels the best trade idea if the ECB cuts rates is with Turkey. Seymour recommends playing Turkey with Turkish Investment Fund ( TKF) and Turkcell Iletisim Hizmetler ( TKC).

Balance Sheet Trades

Companies with a high cash position and low debt can often make for a safe haven in a tough economic environment. Finerman explained that companies that have a strong financial position can survive during tough times. She likes the balance sheet at firms like Office Depot ( ODP), M.D.C. Holdings ( MDC), American Eagle ( AEO) and Berkshire Hathaway ( BRK.A). She doesn't like the financial positions of firms like Office Max ( OMX) and Lennar ( LEN). Finerman disclosed she is long ODP, AEO and she covered her short position in LEN.

Microsoft Trade

Microsoft ( MSFT) is set to report earnings on Thursday after the market close. What is the trade?

CNBC's Jim Goldman joined the "Fast Money" crew to discuss his take on Microsoft. Goldman says analysts are looking for a very strong earnings report for Mister Softee, but Wall Street really will be keying in on the guidance. He also mentioned that Microsoft will shed light on the health of the global tech-upgrade cycle with so much of its business coming from the enterprise customers. Macke believes MSFT is a buy right here. Najarian says the trade is to own MSFT shares and sell the $35 February call options.

Trader Radar

Texas Instruments ( TXN) traded nearly double its average daily volume.

Pops and Drops

US Bancorp ( USB) traded up 7%. Adami loves USB especially with Warren Buffett long the stock. Coach ( COH) traded up 6% after reporting an 11% rise in profits and a 21% rise in net sales. Finerman said nice job.

Brinker International ( EAT) traded up 22% after the firm posted higher quarterly net income as one-time gains offset a decline in sales. Macke says look for a little bit of a rally this stock is way oversold. iShares Russell 2000 Index Fund ( IWM) rebounded up 3%. Adami sees the IWM trading up for a couple of days. AT&T ( T) traded up 2%. Najarian explained the iPhone is doing just fine and not hurting AT&T.


Motorola ( MOT) fell 19% after the cell-phone giant reported an 84% drop in quarterly profits. Najarian says if you're short MOT just keep piling on because they're doing nothing right.

PetSmart ( PETM) fell 1% after the firm lowered its profit forecast for the fourth quarter to 61 cents from 74 cents. Macke would avoid this stock. Flowserve ( FLS) fell 1% on no news. Finerman thinks the drop was an opportunity to buy FLS.

Final Trade

Macke likes the Financial Select Sector SPDR ( XLF). Adami favors Apple ( AAPL). Finerman is returning to her short call on Simon Property Group ( SPG). Najarian favors YRC Worldwide ( YRCW).
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