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The Selling Resumes

THE SELLING RESUMES

The headline: Stocks Falter After Huge Rally

The Dow dipped slightly in choppy trading, just one day after a the Fed’s historic plan to pump liquidity into distressed financial markets triggered a huge rally, says Dylan Ratigan.

The morning rally faded into the afternoon, explains Karen Finerman. It could be that oil hit $110.

There are trades in this market, says Guy Adami. Look at Burlington Northern or Dupont .

If you own BNI it’s time to take profits, adds Pete Najarian.

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COMMODITIES: CRUDE TOPS $110

The headline: Crude Oil Adds 1.1% To $109.92 After Climbing As High As $110.20.

Gasoline and oil prices extended their record-setting streaks Wednesday, explains Dylan Ratigan, with gas at the pump reaching a new high of nearly $3.25 and crude surpassing $110 for the first time. The gains came as a weakening dollar led investors to shrug off an Energy Department report that crude oil and gasoline supplies jumped last week.

I think investors should watch for a loosening of the dollar peg with the Middle Eastern currencies, says Tim Seymour.

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NO BOTTOM FOR BANKS?

The headline: Financials Continue Selling Wednesday After 7% Pop Tuesday.

Bear StearnsChief Executive Alan Schwartz on Wednesday dismissed recurring speculation that the investment bank faces a cash crunch, saying it has hefty cash reserves that have remained little changed this year.

Schwartz, in a televised interview on CNBC, also said he is comfortable with the range of analysts' earnings estimates for the fiscal first quarter ended February 29. Results for the quarter are due next week.

I think risk has been dramatically re-priced in financials, says Karen Finerman, all across the spectrum. And I would not get short financials ahead of a very likely Fed cut, she adds.

I don’t agree with all of that, counters Tim Seymour. I think the recent price action we’ve seen in financials in the last two days has been short covering.

If this is a baseball game, we’re probably in the 7th inning, says Pete Najarian. Wait for a pull back in the Financial Select Sector SPDR, he says.

Look at U.S. Bancorp , counsels Guy Adami. I think they’re best of breed.

Read More:

> Bear Stearns CEO: No Liquidity Crisis for Firm


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AFTER HOUR ACTION: TARGET

The headline: Target In Talks To Sell Portion Of Credit Assets

Target said on Wednesday that it is in talks with an investment partner to sell an undivided interest in about half of its credit-card receivables for about $4 billion, explains Dylan Ratigan. If an agreement is completed, a closing during the second quarter looks possible, the retailer said in a statement.

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SPECIALTY BREAKOUT

The headline: Specialty Retailers American Eagle (AEO),J. Crew (JCG),Talbots (TLB) Surge On Earnings.

I think Mastercard is the way to play retail, says Guy Adami.

And don’t forget the Visa IPO next week, adds Pete Najarian.

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WHERE'S THE LUV?

The headline: Southwest Airlines Tumbles After Grounding 41 Planes Overnight.

Southwest Airlines grounded dozens of planes in the wake of its recent admission that it missed required inspections for structural cracks, explains Dylan Ratigan. The company faces a $10.2 million penalty.

If you’re looking for an airplane play, look at Boeing (BA) counsels, Tim Seymour.

Forget that, counters Guy Adami, check out Rockwell Collins (COL).

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TRADE IN THEIR SHOES?

The headline: Crocs Director Buys 250,000 Shares Of The Shoe Company

I think investors can buy CROX at current levels, says Guy Adami with a stop out at 18 and change.
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HONG KONG FLU

The headline: Hong Kong Shuts Down All Kindergartens, Primary Schools Amid Mysterious Flu Outbreak

I wouldn’t be a seller on this news, says Tim Seymour.

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Trader disclosure: On Mar.12, 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 (AMR), (BIIB), (C), (CSCO), (MS), (MSFT), (YHOO); Najarian Owns (COP) Calls; Najarian Owns (FNM) Puts; Finerman's Firm And Finerman Own (CROX); Finerman's Firm Owns (AEO), (DVA), (FNM), (GS), (MSFT), (TSO), (VLO), (YHOO); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Seymour Owns (HAL), (INTC), (MBI), (MER), (MSFT), (TSO), (CSCO), (TMA); Seygem Asset Management Owns (CHL), (EWT),(SSL), (TCL), (TSM), (EEM) Gazprom

Symbol
Price
 
Change
%Change
DJIA
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CROX
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DD
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LUV
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MA
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TGT
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USB
---
SPDR FIN SEL
---
COL
---
MCD
---
BA
---

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