'Fast Money' Recap: Waiting for Apple

NEW YORK (TheStreet) --The broader markets were led higher by technology stocks and closed modestly in the green on Wednesday.

Apple ( AAPL) didn't get much of a lift on Tuesday from sending invitations to a Sept. 10 announcement. However, on Wednesday, the stock moved higher on speculation the company may have a deal with Chinese telecom giant China Mobile ( CHL) after it was revealed Apple has an announcement scheduled in China shortly after its U.S. announcement on Sept. 10.

On CNBC's "Fast Money" TV show, Dan Nathan said China Mobile has over 700 million subscribers, 180 million of which use 3G. If Apple unveiled a smartphone on the network, it could sell up to 38 million devices by the end of next year, he added.

Guy Adami said the company wouldn't likely schedule the two events so close together if they weren't somehow correlated. He added that investors can continue to own the stock into the event.

Karen Finerman said she is still long and would feel comfortable adding to her position at these levels.

Mike Khouw added that he wouldn't be in a hurry to buy the stock and said that it will likely be weak following the announcement.

BlackBerry ( BBRY) announced that it's hopeful it can work out a deal to be bought out by November. Finerman questioned why this would cause the stock to rally considering the company has been for sale for a while now.

Adami added that this looks like an opportunity for traders to short the stock. Paul Hickey said the company continues to appear more and more desperate.

For their smartphone plays, Nathan was a buyer of Apple on a 5% to 10% pullback, Finerman was long Apple and Google ( GOOG) and Hickey liked the supplier Skyworks Solutions ( SWKS). Adami added that he liked Verizon ( VZ) and Khouw favored Qualcomm ( QCOM).

Auto sales for the month of August were the strongest since November 2007. Asian automakers were particularly strong, with Toyota Motor ( TM), Honda Motor ( HMC) and Nissan ( NSANY) all posting sales gains of 20% or higher for the month.

Finerman said she still likes General Motors ( GM) and would not sell the stock.

Dollar General ( DG) was the first stock on the show's "Pops & Drops" segment after jumping 4%. Finerman said the company reported a solid quarter.

J.C. Penney ( JCP) popped 5%. Adami said that with hedge fund manager Bill Ackman out, he wouldn't be surprised to see hedge fund manager Carl Icahn enter the name. He added the business is terrible but it can still be played on the long side.

Microsoft ( MSFT) fell 2% and Nathan said the stock is a buy below $30 ahead of its analyst meeting on Sept. 19.

Ciena ( CIEN) popped 14% following positive guidance in its earnings report, but Khouw said he would not chase it after it made 52-week highs.

Hickey said traders looking to chase E-Trade ( ETFC) after its 8% jump higher could use $15 as their stop-loss.

Zillow ( Z) was the featured company on the show's "Street Fight" segment. Adami defended it, saying the stock has performed great since the secondary at $82. He added that traffic continues to increase and the huge short interest continues to squeeze the stock higher.

Nathan said the valuation is ridiculously high when sales are decreasing. However, it's hard to short, considering 60% of the float is owned by the top 10 shareholders and that the time to buy was earlier this year.

Qualcomm's CEO, Paul Jacobs, was a guest on the show, discussing wearable technology. The company unveiled its own "smart watch," the Toq -- pronounced "talk." However, he said the company isn't looking to do tremendous sales and will only offer a limited edition product line. Qualcomm wants to show the world what wearable technology can be and is looking to work with partners on expanding in the space, which has plenty of potential.

Citigroup downgraded U.S. equities and upgraded European stocks. Hickey said there seems to be a lot of euphoria surrounding international markets. Over the long term, he would stick with U.S. stocks.

Nathan said Tesla Motors ( TSLA) appears to be losing steam. He is looking to take advantage of a 10% to 15% pullback via a put spread.

Hickey said he prefers Dr. Pepper Snapple Group ( DPS) over Coca-Cola ( KO) because the former should outperform the latter with its strong drink brands.

For their final traders, Khouw was a buyer of diagonal spreads in BlackBerry, Finerman was a buyer of Citigroup ( C) and Nathan was a seller of Tesla Motors. Hickey was a buyer of Salesforce.com ( CRM) and Adami was buying Garmin ( GRMN).

-- Written by Bret Kenwell in Petoskey, Mich.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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