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Dow Gives Up 100-Point Rally

DOW GIVES UP 100-POINT RALLY

The headline:Dow Gives Up Gains in Light Trading After New Home Sales Plunge

Look on the bright side, Guy Adami said. The bears could have easily knocked the market down 200 points. The fact that it closed flat was actually encouraging, he said.

BONDING WITH BUFFETT

The headline: MBIA , Ambac Rattled as Buffett’s Berkshire Hathaway (BRK) Starts Municipal Bond Insurer to Help Local Governments Borrow More Cheaply

This is terrible news for MBIA and Ambac, according to Karen Finerman. Municipalities and local governments will surely choose Berkshire as their bond insurer as it will be a safer bet than the others, even if it is more expensive. In this deal, Buffett essentially decided it was cheaper to build than to buy a bond insurer. That doesn’t speak very well for MBI or ABK.

GOLD POPS, DOLLAR FLOPS

The headline: Gold Surges 3.3% This Week as Investors Seek Safety; Dollar Drops to Lowest vs. Euro Since April 2006

Guy Adami thinks the dollar will rally in the new year. He admits he hasn’t caught the recent surge in gold but still says he wouldn’t be long gold at these levels.

When the dollar rallies – and I think it will – it’s going to be fast and painful for the shorts, Jeff Macke said. The short dollar trade has just gotten too crowded.

Commodities are on fire, Pete Najarian said. It isn’t just gold. I looks as if oil stocks are back on track and coal names like Peabody (BTU) and Joy Global (JOYG) are performing well, too.

A SCARY LITTLE CHRISTMAS

The headline: Wal-Mart , Target , Retailers Drop This Week on Disappointing Christmas Sales

Jeff Macke said it’s too late to short the retail stocks, but that doesn’t mean they’re worth getting long just yet. The one exception may be the retail ETF , which is typically strong into January.

FAST MONEY WORLD: RISING SUN, FALLING STOCKS

The headline: Japan’s Nikkei Sheds 11% in 2007 for First Annual Loss in 5 Years

Japan is “dead money” as evidenced by the performance of the country’s ETF over the past 18 months, Guy Adami said. He doesn’t think Japan will be a trade in 2008, either.

China, though, is a different story according to Pete Najarian. Especially ahead of the Olympics, he thinks the world’s most populous country is a good place to invest, whether it is with Chinese big caps like China Mobile (CHL) or American companies like Apple (AAPL) that have a foothold in China.

FINISHED LINE?

The headline: Finish Line Plummets After Judge Rules It Must Complete $1.5 Billion Genesco Buyout

This buyout will bankrupt Finish Line, Karen Finerman said. The only way to make money off this deal is through options, she said, but even that’s dicey.

Jeff Macke called the situation a “stink show” that he would stay away from at all costs.

INCREDIBLE EDIBLE EGG

The headline: Egg Supplier Cal-Maine Soars After Q2 Profit Jumps More Than Sixfold

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Trader disclosure: On Dec. 28, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (INTC), (HAS), (ATVI); Najarian Owns (CSCO), (C), (MS), (MSFT), (TGT); Najarian Owns (AAPL) Options, (WM) Options, (YHOO) Options; Finerman Owns (GS); Finerman's Firm Owns (WMT), (YHOO), (CLWR), (DSW), (AEO); Finerman's Firm Owns (MDY) Puts And Is Short (MDY); Finerman's Firm Is Short (IYR), (IJR), (SPY), (IWM), (SPG), (TCO); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns (MSFT) Options

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