'Fast Money' Recap: Gold Isn't a Bubble

NEW YORK ( TheStreet) -- The markets ended flat Wednesday after a volatile session.

The Dow Jones Industrial Average added 4.28, or 0.04%, to 11,410.21. The S&P 500 rose 1.12, or 0.09%, to 1193.88. The Nasdaq lost 11.97, or 0.47%, to 2511.48.

Joe Terranova said on CNBC's "Fast Money" TV show, that today's market action was all about risk being taking off the table after the gains from Aug. 9. He said many money managers are starting to look to the end of the quarter and are paring their long and short positions.

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

Tim Seymour said he feels the market is going to retest the lows, with 1180 on the S&P being an important level. He said the market is trading well and received an important tell from the disappointing earnings report from Dell ( DELL). He noted Target's ( TGT) earnings were good although he attributed some of it to cost savings.

Guy Adami noted that the low yields in the bond market indicated the market might be heading lower.

Ron Isana said the market could take off if the Fed initiates a series of unconventional policy measures at Jackson Hole to get money into the system.

Melissa Lee, the moderator of the show, brought in CNBC reporter Kate Kelly who said that Paulson & Co. has suffered huge losses year to date and might have to stave off redemptions.

She said the Paulson Advantage Plus (Levered) fund was off 34%, while the Paulson Advantage Down (unlevered) fund was down 23.5%. She said the company was able to offset those losses with its gold-denominated funds.

Lee brought in David Gartman to comment on a report that Wells Fargo ( WFC) analysts had called gold a bubble.

Gartman, though, said gold isn't at the bubbly stage yet. He said he had not seen that level of public participation yet, and gold's rise has not been parabolic. He said that will happen when gold goes up $100 to $200 in a day and it's front-page news.

He agreed with Terranova that corn is a good commodity play. He said it would be wrong to short corn when demand in China is so strong for it.

Retail stocks continue to rise today, especially Staples ( SPLS), which was up 1%. Finerman said she was satisfied with Staples' earnings. She said the stock is cheap and attractive and much better positioned than Office Max ( OMX) or Office Depot ( ODP). She said Staples has been aggressive about pricing and has built an impressive online sales operation.

Adami said he liked Home Depot ( HD), while Finerman was impressed with Target's bigger-than-expected profits in the past quarter.

CNBC reporter Jane Wells noted that with rising apparel prices, shoppers are getting picky about what they buy, choosing shoes, for example, instead of sweaters. She said retailers, including Apple ( AAPL), are offering discounts to lure customers.

Volatility has ebbed from last week and was above 30 today. Options trader Jim Iuorio said the VIX seems to settling into a range, allowing investors to tip toe back into stocks.

Lee noted that privately held Carlyle Group is in exclusive talks to purchase Pharmaceutical Product Development ( PPDI) for $4.3 billion and asked what might be the next target in the space. Adami offered up Covance ( CVD), which was upgraded Tuesday and could move higher.

Is it time to buy the financials? Isana said it's probably the second great chance since 2009 to to get into the financials after a big selloff of these stocks by hedge funds. He said Bank of America ( BAC) looked interesting from a long-term perspective.

In the final trades, Seymour liked Petrobras ( PBR). Adami liked Forest Labs ( FRX). Finerman reiterated her preference for Target, while Terranova said he liked Amazon ( AMZN).

--Written by David Tong in San Francisco.

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