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S&P 500 Worst Week In 5 Years

S&P 500 WORST WEEK IN FIVE YEARS.

The headline: S&P On Pace For Worst January Ever...Recession Fears Spreading

Wall Street ended a painful week with skittish investors drawing little comfort from President Bush's stimulus plan, explains Dylan Ratigan. After an early advance the Dowturned lower as the president was speaking, which suggests Wall Street was hoping for more.

I’m not impressed by the bailout, says Karen Finerman. But I bought back a portion of my short position in Lehman and also Simon Properties because so much has come down so fast.

If you have gains then take profits, counsels Pete Najarian. However, I do think there’s more ugly ahead.

I think we’re closer to the end than we were even a few days ago, says Guy Adami.

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SUBPRIME POUNDING PERSISTS

The headline: Subprime Sell-Off Worsens On Merrill's Record Loss, CitigroupDividend Cut, Bond Insurer Meltdown.

Citigroup sunk to its lowest level since 1998 on record losses and a dividend cuts, says Dylan Ratigan. Meanwhile Goldman lost 7%

I think we’ve seen the worst out of Merrill, says Karen Finerman. I’m starting to think MER looks attractive.

If you feel like you have to be in banking, adds Pete Najarian, look at U.S. Bancorp.

The safest place to be in banking is your therapist’s office says Jeff Macke. Why would anyone need to get into this sector?

I like Goldman Sachs, says Guy Adami. I think the stock is cheap.

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INTEL LEADS TECH SELLOFF

The headline: Intel Plummets 13% This Week After Earnings, Cautious Outlook Spook Investors.

I think Intel put in a bottom, says Guy Adami. Intel is down 30% in a month and I say, “buy the dip”.

Intel wasn’t the only thing in tech that didn’t work, adds Dylan Ratigan. Apple tumbled 7% this week after Macworld failed to impress investors.

The Apple numbers on Tuesday could be a major catalyst for this stock, says Pete Najarian.

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IS THE COMMODITY BULL DEAD?

The headline: Energy, Metals, Ag Stocks Slammed This Week, Suggesting Commodity Bull May Be Dead.

If you’re playing these stocks you’re betting against recession. The energy stocks are just starting to feel pain, says Jeff Macke. I think the commodity names have further to fall.

When global growth slows investors worry about commodities, says Guy Adami. If you’re in Newmont , get out, he adds.

Be careful in the Energy Select Sector SPDR and Materials SPDW . I see too much put activity in both ETFs, which suggests to me they’re going lower, says Pete Najarian.

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A HEAVY DOSE OF SKEPTICISM

The headline: Concerns Over Cholesterol Drug, Anti-Depressants Loom Over Big Pharma Earnings Next Week.

It was a tough week for Big Pharma, explains Dylan Ratigan. Both Merck and Schering-Plough sustained double-digit losses after word that the cholesterol pill Vytorin worked no better than cheaper drugs. Also, the New England Journal Of Medicine reported Wednesday that there were concerns about the effectiveness of some antidepressants.

Take profits in some in those drugs names, says Pete Najarian. I’m concerned about issues going forward.

I like Humana , says Guy Adami.

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TELECOM TANKS

The headline: Sprint Nextel Falls Most In 25 Years On Loss In Subscribers, Job Cuts.

Sprint traded 225 million shares on Friday says Guy Adami. I think it’s okay as a trade.

I think it’s fun to watch these stocks, says Karen Finerman. But don’t get involved!

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Trader disclosure: On Jan 18, 2008, 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 (INTC), (YHOO); Najarian Owns (BIIB), (C), (CSCO), (MS), (MSFT), (EMC); Najarian Owns (LEH) Puts; Finerman Owns (GS); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (PLCE), (TSO), (VLO), (WMT), (YHOO), (M), (AEO) (DSW), (SUN), (SKS); Finerman's Firm Owns Russell 2000 Puts And Is Short (IWM); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Is Short (MDY), (IYR), (IJR), (SGP), (TCO),(SPY); Finerman's Firm Is short (LEH) And Owns (LEH) Puts; GE Is The Parent Company Of CNBC

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