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TURNAROUND: Market Swings 600 Points Intraday, Soars Higher

MARKET TURNAROUND

The headline: Does Wednesday’s Monster Rally In Bank, Broker Shares Suggest Financials May Have Hit Bottom?

The prospect of a government bailout of the bond insurers sparked the rally, but it wasn’t the only thing. Pete Najarian noted that there are rumors that the European Central Bank might cut rates as well. Those two kernels of news were enough to send the financials much higher.

Once it became clear that the government is not going to let the bond insurers go bankrupt, investors realized they could buy names like AMBAC and MBIA on a huge discount at their current levels. The crisis of confidence has been mitigated at least a little because it looks like the government is finally on the problem, according to Jeff Macke.

Whenever the market trades in big swings up or down that signals panic, Karen Finerman uses the opportunity to find value plays. That’s what she did Wednesday, buying Altria and Flowserve as both got knocked down big in the morning along with the rest of the market.

TECH SHAKES OFF APPLE AVALANCHE

The headline: Tech Stocks Finish Higher Even After Apple Earnings Send Shares Plunging

Pete Najarian would still buy Apple despite its earnings wreck. AAPL is still a growth story, he said. Guy Adami agreed, calling this the “reversal you’ve been looking for” as an entry point into the stock. Karen Finerman isn’t quite ready to recommend Apple, but she said she’s “getting close.”

Guy also said buying Google here is a “no-brainer.” Using the $513 double-top level, he would buy GOOG and only get out when it breaks that support level.

CONSUMER STOCKS AID REBOUND

The headline:Retail ETF Adds 3% as Wal-Mart , Target, Home Depot Continue to Climb

Wal-Mart works here, according to Jeff Macke. A weak consumer coupled with the Fed plays into Wal-Mart getting its mojo back.

The retail bullishness ended there. Karen Finerman used the strength in retail to sell positions in many of the retailers in her portfolio, Pete Najarian said this provides an opportunity to get out of the sector without getting burned even further and Guy Adami recommended taking profits in Home Depot.

VIAGRA HELPS LIFT MARKET

The headline: Pfizer Climbs on Better-Than-Expected Earnings, Revenue, 2008 Sales Outlook

Big Pharma is looking good and so is Pfizer, at least as far as Pete Najarian is concerned. Abbott Labs and Merck could be due for pops, too, he said.

Pfizer is easily the best and cheapest of the bunch, Guy Adami said.

KEEP ON TRUCKING

The headline: Rail, Trucking Shares Jumping Despite Economic Growth Concerns

CSX, Burlington Northern and Norfolk Southern are all seeing gains on spectacular earnings. Even YRC Worldwide looks overdone to Pete Najarian, even after it gavethat gloomy outlook last fall.

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Trader disclosure: On Jan 23, 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), (EBAY), (MCD), (MSFT); Najarian Owns (AAPL) Calls, (COP) Calls, (NSC) Calls, (WM) Calls, (YHOO) Calls, (YRCW) Calls; Finerman Owns (GS), (M); Finerman's Firm Owns (MO), (ODP), (TSO), (YHOO), (AEO), (CROX), (HD), (WMT); Finerman's Firm And Finerman Own (FLS); Finerman's Firm Is Short (SPY), (MDY), (IJR), (IWM), (SPG); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts

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