The stock market experienced another wild day Friday, packed with tons of volatility. The Dow finished down 171 points and the Nasdaq fell 21 points. Karen Finerman explained on CNBC's "Fast Money" Friday that with all the volatility the market experienced this week, the S&P 500 barely moved. According to Guy Adami, the market gave investors a lot more clarity this week. Pete Najarian expects volatility to spike up for the next three to five weeks. He also believes the Dow will experience 200- to 300-point intraday swings during that time frame. Financial stocks put in a strong week off the back of a 75-basis-point Fed rate cut. Najarian thinks the Financial Select Sector SPDR ( XLF) is a buy at $25 and a sell at $28. Adami says to take profits in Wachovia ( WB) and look to buy it back lower. Outside of Apple ( AAPL), technology stocks rebounded this week. Najarian says he would stay away from technology stocks right now. Adami likes Microsoft ( MSFT) at $32. Gold traded up to $910.70, a new record high after a power shortage in South Africa hit miners. Adami loves mining names like Freeport-McMoRan ( FCX), which he feels is undervalued. He also likes Peabody ( BTU) for a coal play. Seymour says investors should be short gold and long miners like Gold Fields ( GFI) or Harmony Gold Mining ( HMY). Najarian prefers coal names like Joy Global ( JOYG), Peabody Energy ( BTU), Massey Energy ( MEE) and Alpha Natural Resources ( ANR). U.S.-based multinationals like Honeywell ( HON) and Caterpillar ( CAT) continued to show strength Friday. Adami highlighted how Honeywell performed well Friday despite the down market. He says HON is heading to over $60. Seymour says CAT is cheap compared with Deere ( DE). According to Najarian, the agriculture plays are a better way to play the global story. Finerman says she is a value investor and the stocks she is picking are doing well. Seymour says the market isn't trading on valuations, but rather off fear and flows. He questioned how investors price in that risk. Najarian noticed unusual options activity in the chemical stocks. He mentioned the options trading in Dow Chemical ( DOW) is suggesting the stock will move much higher. He would also look at Deltra Petroleum ( DPTR), which had huge front-month options activity.
On Jan. 22, Seymour said look at iShares MSCI Emerging Markets Index ( EEM) and iShares FTSE/Xinhua China 25 Index ( FXI). Seymour was on the money, and both emerging-market ETFs traded up over 8%. On Jan. 18, Finerman told investors to look at Home Depot ( HD) because she felt the stock was oversold. She was right, and the stock traded up 9% since her call. On Jan. 22, Adami said buy Wachovia ( WB). Adami nailed this call and WB went up nearly 20%.