The U.S. stock market had a bummer of a day Wednesday as a continued rally in crude, some negative news from the Federal Reserve and a weak day for financial services contributed to investor grumpiness. The Dow lost 1.8%, the S&P 500 tumbled 1.6%, and the Nasdaq gave up 1.8%.

On CNBC's "Fast Money" TV show, the traders observed that oil hit $134 a barrel today. Jeff Macke said that the Fed's comments were not really news, but the market didn't want to hear it.

Karen Finerman said that retail stocks have had a run-up lately. She'd like to buy some more, but she's waiting for an opportunity to get in lower, she said.

Guy Adami said that from March until a few days ago, the market has been "on fire." He predicted a correction and recommended that investors buy stocks they had missed. When tech pulls back, get into tech, he said.

Najarian observed that Goldman Sachs downgraded several natural gas stocks. He said that the surge in oil prices was accompanied by a surge in the volatility index. Fear is returning to the marketplace, spurring profit-taking in energy names like ConocoPhillips ( COP - Get Report) and Exxon Mobil ( XOM - Get Report), he said. He said the only thing that held on to gains for the day was the U.S. Natural Gas ( UNG - Get Report) ETF.

3 Stocks I Saw on TV

Macke said that there's a bubble in commodities. He said that behind every bubble there is a story that makes sense. He said that the financials got hurt today in part because Moody's said it mispriced some debt.

Najarian said he bought some Frontier Oil ( FTO) today. He said that other refiners like Valero ( VLO) and Tesoro ( TSO) might not be working, but he observed heavy call activity in Frontier. He said the stock is cheap compared with its earnings.

Finerman said she bought some Citigroup ( C - Get Report) today.

Airlines on the Runway

Guy Adami said the airlines saw a very high-volume day. He said AMR ( AMR) is a heavily shorted name. He said that investors can buy AMR shares if they think crude will dip.

Macke said that investors need to display patience here. He said Citigroup will probably fall farther from here. He said that AMR will explode if oil falls. He said he would put 3% of his portfolio into an airline in hopes of catching the rise.

Najarian said he thinks AMR is a buy. He said management is making necessary but painful moves, including laying off workers and retiring old planes.

The Big-Box Beat

BJ's Wholesale ( BJ - Get Report) sold off today. Macke said that the company produced numbers not unlike those from Wal-Mart ( WMT - Get Report). He said the good news for BJ's was already in the stock. He said as long as there's a bubble in oil, the retailers are going to lag.

Adami said that Costco ( COST - Get Report) just reported great April comps. He said that if the stock dips, viewers may want to own it into earnings.

Finerman predicted headwinds for Wal-Mart as the consumer gets hit by high prices. Najarian agreed.

Macke said he still likes Wal-Mart because it's perceived as the company that can offer the most support for the consumer by offering lower prices. He said, unlike Target ( TGT), Wal-Mart is seen as a solution to high prices.

What a Softie

Microsoft ( MSFT) announced it would give customers cash back on purchases made through its search engine. Sounds desperate, said Macke.

Najarian pointed out heavy options activity in ValueClick ( VCLK). He said that maybe Microsoft could buy ValueClick. That'd be nice, said Finerman, whose fund is long ValueClick.

Energy has been experiencing a tumultuous year as oil continues to rise. Najarian said that coal is still a good play in this energy environment. He recommended Alpha Natural Resources ( ANR) and Walter Industries ( WLT).

Adami pointed out that Nucor ( NUE - Get Report) is doing a secondary offering. Buy it when it prices, he said.

Trouble in the Hedges

Financial services stocks dropped 2.5% today. Lehman Brothers ( LEH) was hit hard after analyst Dick Bove questioned the company's hedging strategies. Bove joined the show to discuss his thesis. He said that the companies are losing money on short positions they've put on financial indices.

Bove named Merrill Lynch ( MER), JPMorgan ( JPM) and Goldman Sachs ( GS) as companies that, in addition to Lehman, are vulnerable to this botched strategy. He said that Citigroup will probably get hurt, but over the long term, he's still bullish on the company.

The Hoarding Hordes

Noted 1990s investor Michael Masters today decried speculative action in the commodities market, saying that stockpiling these goods is bad for society. He added that financial instruments that help establish long positions in commodities may contribute to a new crisis in the future.

Dennis Gartman, author of The Gartman Letter, joined the show to discuss these problems. Gartman said Masters is on to something. He said that holding oil, wheat and soybeans from the market has created a problem that is exacerbated by increased demand from China and India.

Macke said that the bullish action in crude oil is a speculative bubble. He said that there were no fundamentals to back the rise in oil prices today. He said that industry by industry, the entire economy will eventually suffer because of this.

Gartman said that the government made a good move by refusing to continue to add to the Strategic Petroleum Reserve. He said that if the government sold 100 million barrels of crude, that might prick the bubble.

Finerman said that it's going to be embarrassing for big oil companies like ConocoPhillips, Exxon Mobil and ChevronTexaco ( CVX) when they get called before Congress to justify their earnings on these high prices. She said the companies may increase capital expenditures to hide their earnings, and that their continued exploration may help oil on the supply side.

Adami said he would be long the oil services sector. He said those companies are cheap on a valuation basis. He also pointed viewers to engineering names such as Fluor ( FLR - Get Report) and Jacobs Engineering ( JEC - Get Report) on a pullback.

Macke said big oil companies actually do not benefit from the continued increase in oil prices, saying they would prefer that oil remain at a high price over an extended period of time.

Najarian said that steel and coal are better plays on this news because the materials necessary for the oil services sector are going to remain in demand.

Trader Radar

Borders ( BGP) traded on unusual volume today.

The Federal Aviation Administration banned use of Pfizer's ( PFE) Chantix today. Macke said the drug is dead, along with many drug companies. Najarian said Novartis ( NVS) and AstraZeneca ( AZN) are working here.

The traders welcomed Joe Clark of the Financial Enhancement Group to discuss the news that technology is now the largest-weighted sector in the S&P 500 thanks to a huge contraction in financials. Clark said that some of the old companies that have revamped their business models, such as Hewlett-Packard ( HPQ) and IBM ( IBM), are worth buying.

The traders discussed potential outcomes for alternative energy based according to who may win the presidential race. Finerman said Obama will be good for alternative energy but McCain will be good for coal and bad for alternative energy. Najarian agreed with Finerman on Obama and said McCain would be good for financials and bad for ethanol. Macke said McCain would be good for defense. Adami said defense spending will increase no matter who is in office.

Final Trade

Macke picked the U.S. Oil Fund ( USO). Adami selected AMR. Finerman said to buy the Oil Services HOLDRs ( OIH - Get Report) with USO puts. Najarian chose Disney ( DIS).