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Turnaround Leads To Best Gain Of '08

TURNAROUND LEADS TO BEST GAIN OF '08

The headline: Stocks Turnaround; The Dow Rises 146 points, To Close At 12,735.

Stocks finished a back-and-forth session sharply higher Wednesday as investors bought bargains despite concerns about the strength of the economy and upcoming corporate results explains Dylan Ratigan.

Berkshire's Ajit Jain said his firm is in talks with troubled bond insurers about a potential partnership and I find that intriguing, says Karen Finerman. The news propelled the market.

Also, "Fed easing speak" might have driven the market Wednesday, adds Tim Seymour.

When you see movement in the financials – sell into the strength says Pete Najarian.

It didn’t feel like a reversal says Guy Adami, it felt more like a short covering rally. I recommend Altira (MO) as a defensive play.

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NASDAQ FINALLY GOES UP

The headline: NASDAQ Finally Breaks Losing Streak After Shedding 10.4% Over Past 8 Days.

I think Microsoft is the best name listed on the NASDAQ says Guy Adami. It’s a buy.

Both Microsoft and Oracle look good to me, adds Pete Najarian. But let’s see what tomorrow brings.

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AFTER HOURS ACTION: ALCOA KICKS OFF EARNINGS SEASON

The headline:
Aluminum Producer Alcoa Said Wednesday Its Fourth-Quarter Earnings Soared 76%, Buoyed By The Pending Sale Of Its Packaging And Consumer Businesses.

Alcoa could be a takeover target says Tim Seymour, and I think it’s a company that’s trading cheaply.

I think discussions between Rio Tinto (RTP) and BHP Billiton (BHP) could move Alcoa stock. If those talks heat up Alcoa could go higher as a takeover target, says Karen Finerman.

I also think AA is a buy as a trade, says Guy Adami.

On a related M&A note – Pete Najarian recommends keeping an eye on Delta Airlines (DAL).

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GOLDMAN'S GUIDE TO A TOUGH TAPE

The headline: Should You Listen To 'The Best' And Follow Goldman Sachs' Recommendations?

Goldman Sachs is forecasting a recession in 2008, explains Dylan Ratigan. Subsequently, they recommend buying healthcare, gold stocks, and defensive names like Altria and they’re negative on media, auto and chemical stocks, he adds.

In healthcare, I like Pfizer (PFE) says Guy Adami as well as Johnson & Johnson (JNJ) which is more of a consumer products play.

Take a look at Novartis (NVS) adds Pete Najarian.

I think we could be near the end of the Phillip Morris run, speculates Karen Finerman.

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DUBAI DOUBLES DOWN

The headline: MGM Mirage , Dubai World To Buy Back Up To 10M Shares For $75-$80 Each.

I think something is going on here, says Guy Adami. Take a look.

The casinos might be a little overdone, says Tim Seymour. However, Jefferies upgraded the whole sector Wednesday.

Be careful in this space, warns Pete Najarian.

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OVERSEAS & OVERPERFORMING

The headline: Brazil ,China ETF (FXI), Taiwan ETF (EWT) Continue To Perform Well Wednesday.

Petrobras (PBR), Tele Norte Leste (TNE), and China Mobile (CHL) all posted some of the strongest gains, Wednesday explains Tim Seymour.

If you bought China Mobile, says Guy Adami raise your stop up to $85.

Keep an eye on Anderson (ANDE) and Archer Daniels Midland (ADM) counsels Pete Najarian.

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TRADE UPDATE: GARTMAN

Dennis Gartman e-mails Fast Money to say he sold half of his position in gold Wednesday. Also he’s long nat gas and short crude oil.

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Trader disclosure: On Jan 9, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (C), (MSFT), (MCD); Najarian Owns (AIG) Options, (CFC) Options, (VLO) Options, (WM) Options, (YHOO) Options; Finerman Owns (GS); Finerman's Firm Owns (DSW), (PLCE), (SKS), (WMT), (YHOO), (AEO),(CROX); Finerman's Firm Owns (MSFT) Options; Finerman's Firm Is Short (IYR), (IJR), (IWM), (SPY), (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 (MDY) Puts And Is Short (MDY); Seymour Owns (AA), (AAPL), (CFC), (ETFC), (INTC), (MBI), (MER), (MSFT), (SBUX), (YHOO), (CSCO), (TIE); Seygem Asset Management Owns (EWZ), (EWT); Seygem Asset Management Is Short (PBR)

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