Dylan Ratigan hosted CNBC's "Fast Money" Monday night. He kicked off the show with a discussion around Fannie Mae (FNM) and Freddie Mae (FRE), which saw their shares plunge after the U.S government took over the companies.Ratigan asked the traders if they are any more confident to buy stocks today than on any other day this year. Pete Najarian said yes. He advised viewers to consider Morgan Stanley ( MS - Get Report). He also disclosed that he added to his put position in Lehman Brothers ( LEH). Jeff Macke said he likes Wal-Mart ( WMT - Get Report), which broke out technically today. Guy Adami mentioned that Church & Dwight ( CHD - Get Report) and Johnson & Johnson ( JNJ - Get Report) continue to work. Ratigan switched the conversation to the housing market. Macke said that if he were long any homebuilding stocks right now, he would be taking profits. Adami pointed out that the 30-year mortgage rate went from 6.5% to 6% today. He said he likes Home Depot ( HD - Get Report) for a play on the housing recovery. Finerman said that if you want to play in the housing sector, buy something like MDC ( MDC - Get Report) or Centex ( CTX) that isn't over-leveraged. Najarian explained that the homebuilding stocks have been moving higher because of the high short interest in the sector. Macke and Najarian both agreed that the homebuilders are trading vehicles only. Ratigan brought up a report out of the Financial Times that said subprime king and hedge fund manager John Paulson told investors he's looking to get more involved with the financial sector. Finerman said she likes the idea, and she said she would take a look at Fannie Mae ( FNM) preferred stock, General Electric ( GE - Get Report) and Citigroup ( C - Get Report).
Adami mentioned that U.S. Bancorp ( USB - Get Report) is close to an all-time high. Najarian said the cream of the crop in the financial stocks includes JPMorgan ( JPM - Get Report), U.S. Bancorp and Wells Fargo ( WFC - Get Report). Turning to Tech Ratigan moved the talk to the technology sector. Adami pointed out that the chart of Research In Motion ( RIMM) is broken. "If you're long RIMM, you should buy some puts and sell an upside call," Najarian added. Finerman says Google ( GOOG - Get Report) is getting close to a value play when you look at the P/E level. Najarian pointed out that Google traded twice its average volume today, which could be a sign of a bottom for the stock. FBR analyst Paul Miller joined the traders to discuss the financial sector. Miller says the bank stock rally is a step in the right direction, but he said he is worried about what will happen during the fourth quarter. "I think the financial rally has more room to go and will extend for a couple of more weeks," he added. However, Miller said he is worried that any bank with a large amount of Level 3 assets, like Wachovia ( WB), could be the subject of an audit in the fourth quarter. Socialist Trade? The traders discussed ways to trade the government's new move toward socializing companies. Adami explained that Gap ( GPS - Get Report) has figured out a way to get their gross margins up 4%, and its operating margins up 10%. He said that when we come out of the credit crisis, the retailers will do well. Finerman thinks the government intervention in Fannie Mae and Freddie Mac is bearish for the equity of General Motors ( GM - Get Report) and the airline stocks.
Opec and $100 Oil Joe Terranova joined the crew to discuss the chances of OPEC allowing crude oil to trade down to $100 a barrel. He said that right now, OPEC is over-supplying the market. He said that if OPEC doesn't get what it wants, it may cut production at the December meeting. He said the refiners could be a trade here, but the market is so crazy, it's a tough call. The bottom line from Terranova is that the United States Natural Gas Fund ( UNG - Get Report) and the United States Oil Fund ( USO - Get Report) isn't the way to trade crude oil right now. Technical Talk Oppenheimer chief market strategist Carter Worth joined the traders to discuss his call to sell the bounce in a note to clients today. Worth explained that the volume wasn't near record levels, and semiconductors didn't even participate. He said he was surprised the Dow wasn't up 1000 points off the Freddie Mac and Fannie Mae takeover news, and the fact it wasn't shows the market is weak. Worth said the only stocks working today were the same "loser stuff" and not names like Google and the chip stocks. Apple MusicPiper Jaffrey tech analyst Gene Munster, joined the gang to discuss Apple ( AAPL - Get Report) ahead of the company's meeting set for Tuesday. Munster said it will be music-based announcement around the iPod Touch or iPod Nano. Munster said the meeting doesn't mean much because the iPod is the least significant of the company's three business segments. He said he feels the meeting has more to do with Steve Jobs. "I am confident that Jobs will be at the meeting and looking healthy," Munster said.
Trader Radar Shares of Home Depot ( HD - Get Report) were among the most actively traded stocks on the NYSE today. Final TradeMacke said buy Research In Motion at $100 and stop out at $95. Adami picked Urban Outfitters ( URBN - Get Report). Finerman recommended Flowserve ( FLS - Get Report). Najarian selected Novo Nordisk ( NVO - Get Report).