'Fast Money' Recap: Market Shift Coming

NEW YORK ( TheStreet) -- The markets ended mixed Tuesday as consumer confidence hit a five-month low.

The Dow Jones Industrial Average was up 12.26, or 0.12%, to 10,537.69, while the S&P 500 fell 1.17, or 0.17%, to 1,113.84. The Nasdaq was down 8.18, or 0.36%, to 2,288.25.

Jon Najarian said on CNBC's "Fast Money" TV show said he found it encouraging that the market was able to hold on and that the VIX was able to stay below its 200-day moving average.

Joe Terranova used another technical barometer to determine the next market upswing: the S&P 500's 100-day moving average, which he pegged at 1,128. He said investors should be watching that point as well as the 10-year Treasury yields and gold.

Guy Adami, a bear, said he's expecting a "violent" move in the markets in the next couple of weeks, "one way or the other."

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Terranova said it's very difficult to be bullish or bearish these days. Rather, he said investors are more inclined to be short or long and adjust quickly to macro news and earnings results along the way.

Steve Grasso disagreed in part, saying his clients are not shorting this market.

Brian Kelly characterized today's move up as a correction in an overall downward trend. He said it's painful to be short, then quickly added he wasn't very short at the moment.

Melissa Lee, the moderator of the show, said commodities were down today, with gold dropping $25 for the day. Adami said investors are starting to see how quickly gold can unwind. Terranova said he was reallocating from gold and Treasuries and into equities.

Despite a record loss reported by BP ( BP), Whitney Tilson, managing partner of T2 Partners, said the oil company still has enormous liquidity. Terranova said the key question for BP is whether the Obama administration will allow it to continue drilling in the Gulf of Mexico. Adami said he could see only potential negatives left in the stock and believes BP will trade down to $34.

Lee noted a report from Bank of America-Merrill Lynch that said that every sector in the S&P is trading below its historical multiple average. Kelly, though, questioned that point, arguing it would be difficult to compare the current recession and recovery to any in the past because of its unique qualities.

Is Best Buy ( BBY) a value play or a value trap? Colin McGranahan, an analyst with Sanford C. Bernstein, said the Best Buy is in a very tough position where it is operating in a segment where than more than 100% of growth is going online. He said the second quarter is not shaping up well after a quarter that saw weak sales.

Terranova, who owns Best Buy, acknowledged the stock is not performing. Still he said he was holding on it because he believes the stock is a "fourth-quarter story."

Lee shifted to the new energy bill moving through the Senate that calls from the removal of a $75 million on economic loss liability, rebates for alternate fuel vehicles, and $5 billion for the Home Star Energy Program.

Paul Sankey, an analyst with Deutsche Bank, said the removal of the liability cap will dramatically raise the liability insurance costs for drillers and cause many of them to leave the Gulf.

Lee brought in Dr. Mark Schoenebaum, an analyst with ISI Group, who said there is a strong probability that Genzyme ( GENZ) will be acquired for as high as $80 a share.

Shifting to telecom, Kelly said he liked Sprint Nextel ( S), which is up 33% this year. Because he doesn't normally trade into earnings, he liked Clearwire ( CLWR) as a derivative trade because the company is involved in the building of the 4G network. Grasso said he liked the tower stocks, including American Tower ( AMT).

Lee brought in Jeffrey Gardner, president and CEO of Windstream ( WIN), a telecom broadband provider serving rural markets.

Gardner said his company has reached 90 percent of its customers and is counting on the support of government stimulus funding to reach the remaining 10%. He said the company, through acquisitions and an internal push, now sees more than 50% of its revenue from broadband and enterprise.

In afterhours trading, Broadcom ( BRCM) had started to turn positive after it reported an earnings beat. Terranova said the company was well positioned to capitalize on its exposure to tablets and mobile devices.

Najarian said he bought IBM ( IBM) and Sandisk ( SNDK) on pullbacks.

In a quick 360-degree look at RadioShack ( RSH), all three experts were down on the stock. Michael Pachter, an analyst with Wedbush Securities, advised selling the stock, saying it was overvalued. Carter Worth, an Oppenheimer chartist, said the stock was stuck at $20 and to sell it. And Najarian said he was staying away from the stock.

In the final trades, Kelly liked United States Natural Gas ( UNG) Terranova liked Medtronic ( MDT) while Adami liked Windstream. Grasso liked Peabody Energy ( BTU). Najarian liked U.S. Bancorp ( USB).

-- Written by David Tong in San Francisco

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