3 Stocks I Saw on TV
NEW YORK ( TheStreet) -- Major U.S. indices finished moderately lower Friday, but were each down roughly 5% during a week that battered the market with disappointing economic data, including larger-than-expected job losses than June. The Dow is seeing its longest losing streak since 2008. Simon Hobbs, sitting in for Melissa Lee, talks strategy with Guy Adami. Adami says he is worried about the market and believes the best way to protect yourself is to get out on the next rally. He says the market is "heading much lower." Rather than run, Steve Grasso suggests buying some suds -- the UltraShort S&P 500 ( SDS) -- if you think the market is going down. Tuesday is "going to be a critical moment in the market; it could be a capitulation moment," says Joe Terranova. After a long weekend ahead, people will have time to reflect on what they hold, and may want to get out, but he is "not buying into the double-dip recession theory." For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
"Did you have the guts to short today?" Hobbs asks. Terranova says no, but Brian Kelly of Kanundrum Capital says he sold some short today. Kelly says the jobs number this morning was terrible: "There is just no reason to be in this market. You want to be short this market, if you are aggressive. If you are not aggressive, you don't have to be in it," he says. Grasso concurs that the market is more likely going down than up. CEOs are just not hiring yet, that's why the markets are going down. Terranova is looking to buy on the capitulation moment he expects on Tuesday. Here's the set-up: "Market opens Tuesday, it is not higher. People reflected this weekend, they say throw in the towel, I'm out. You see a big whoosh, probably below 1,000 in the S&P, and by the end of the day, you're higher." The only place we differ, says Adami, is that I think we are closer to the beginning of this move down than we are toward the end. The strategy now is sell every rally.
Patty Edwards agrees with Adami: There is no reason to like this market now and there are no catalysts in sight. You can't go many places to hide, but if you look at some dividend-paying stocks and hedge them, make about 3%, that is almost the best you can do, says Edwards. The Chart of the Day was the U.S. 10-Year Yield, which has dropped significantly. Kelly says the bond market is telling us we are going into another recession, or at the very least, the economy is slowing down. Terranova says the 10-year Treasury is impossible to predict and can turn at any given moment. Eyeing Tuesday again, Terranova says if the market does turn around, focus on technology and energy. If the market is higher Tuesday afternoon, you go right back into Apple ( AAPL) the semi names. Hobbs asks whether anyone is buying financials on Tuesday, after the sector was a buzz kill this week, with the ETF dropping 7% in five days. One of the biggest losers, Morgan Stanley hit a new 52-week low. Kelly says the yield curve has narrowed, it is not as steep as it used to be, so the gravy train for all the financials is gone now; they are not making as much money on that trade. Grasso says he is already holding some big financials, looking for the five-year play on names like Citi ( C), JPMorgan ( JPM) and Bank of America ( BAC). Terranova says Goldman ( GS), a fantastic franchise, down at 130 bucks, is a must-have. Regarding commodities, with precious metals and oil dipping, Hobbs asks if now is the time to sell. Terranova says the trade this week was to be short gold. Grasso says everyone in commodities space is bearish, and they have been right for the last couple of weeks. Brian Nagel, analyst at Oppenheimer, says buy consumer stocks despite the bad news. He's playing names like Bed Bath & Beyond ( BBBY), Pier 1 Imports ( PIR) and Williams-Sonoma ( WSM). Edwards, on the other hand, is skeptical on how strong the consumer is going to be. Adami and other panelists side with Edwards. Moving on to currencies, while the euro is on the rise, Hobbs asks whether the USD is in trouble. The euro jumped 1.4% against the dollar this week. Kelly says the ECB loan, coupled with bad U.S. economic data, helped boost the euro. Will biotech be the "it" trade for the second half of the year? Mark Schoenbaum of ISI Group says although biotech was hot today, the sector has dramatically underperformed for the year, primarily because people are worried about the high costs of drugs. Nevertheless, Schoenbaum says there are big-cap biotech stocks that are cheap right now. He likes Gilead Sciences ( GILD) and Celgene ( CELG) and Genzyme ( GENZ). -- Written by Cherella Cox in New York To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. "Check out "'Fast Money' Portfolios of the Week" on Stockpickr every Thursday. Follow TheStreet.com on Twitter and become a fan on Facebook.