'Fast Money' Recap: A Buying Opportunity

NEW YORK (TheStreet) -- The broader markets closed moderately lower on worries over a potential government shutdown.

On CNBC's "Fast Money" TV show, Steve Grasso said while stocks could go lower because of the looming shutdown that could create a buying opportunity. He likes casino stocks and is staying long his favorites including: Bank of America ( BAC), Google ( GOOG) and Tesla Motors ( TSLA).

Pete Najarian said that while volatility is still a little low, the CBOE Volatility Index ( VIX) did spike over the 200-day moving average, which could potentially pave the way towards levels last seen in June. He added the Financial Select Sector SPDR ETF ( XLF) had been leading the recent rally, but has been underperforming lately.

Karen Finerman said she would love to see a selloff in the financials to buy Citigroup ( C). She added that investors should continue with what's working because the government is just "crying wolf."

Tim Seymour said the market weakness should be bought, along with commodities. He added that rates will likely go higher as well.

If the government does shut down, Najarian said he would be taking profits in Chinese Internet stocks such as Sohu.com ( SOHU) and Baidu ( BIDU) and adding to or buying names in the energy sector.

Finerman said she was surprised that gold was down on Monday because if the government does shut down, tapering becomes less likely, which is typically seen as a positive catalyst for the precious metal.

John Stoltzfus, chief market strategist and managing director at Oppenheimer & Company, was a guest on the show and pointed out that the markets actually performed pretty well during the government shutdowns in 1995 and 1996, before rallying substantially higher following a resolution. Even if there is a shutdown, it will likely be very short. He added that it will only become a true market risk if it is an extended shutdown.

Grasso said the charts for General Dynamics ( GD), Northrop Grumman ( NOC) and Lockheed Martin ( LMT) all look great, but the latter is his favorite.

Najarian said that Boeing ( BA) looks the best, because of its exposure to airlines.

On Microsoft ( MSFT), Najarian likes the stock but it isn't a buy until CEO Steve Ballmer is out. He's not so convinced Ford's ( F) CEO Alan Mulally is the next in line.

Seymour said AMC Networks ( AMCX) could be an attractive takeover target and thinks it could go higher.

With monthly auto sale figures due out on Tuesday, Grasso said the trend in autos is still up and that traders should be fine in these names.

Apple ( AAPL) was the featured company on the show's "Street Fight" segment. Najarian defended the stock, saying the valuation is cheap and the company has a ton of cash. He added the iPhone just had a record launch, the company has a ton of potential in China, and it has a 90% retention rate.

Seymour disagreed with just about everything and argued that CEO Tim Cook doesn't have to listen to hedge fund manager Carl Icahn. He added that until a deal with China gets done, the company won't see substantial growth and that most of the iPhone sales were upgrades, not new customers.

For their final trades, Finerman was a buyer of Citigroup and Seymour was buying the iShares MSCI Emerging Markets ETF ( EEM). Grasso said to buy Bank of America and Najarian was buying Bristol-Myers Squibb ( BMY).

-- Written by Bret Kenwell in Petoskey, Mich.

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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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