Strong Rebound For Stocks
STRONG REBOUND FOR STOCKS
Thursday’s huge volume spike was just what we needed to see, Pete Najarian said. In particular, Bear Stearns traded such high volume in stock and options that he thinks the bottom might be in by way of capitulation.
Get long Goldman Sachs right here, Guy Adami said.
On the earlier news that Carlyle Capital was on the brink of capsizing – a story that sent the market down 200 points on the open – Karen Finerman thinks that scare has now mostly been digested.
AND END IN SIGHT?
Karen Finerman is skeptical. S&P missed the boat before and she wouldn’t trust the firm to call the bottom.
Joe Terranova, filling in for Jeff Macke, termed himself a “patient buyer” of this market. The good news is that the Fed understands we are in a period of deleveraging, he said, and it’s going to make sure it is done in a controlled manner.
OIL TOUCHES $111
The headline: Crude Oil Closes Up 0.4% to $110.33 After Briefly Touching $111
Joe Terranova thinks oil will continue to run until next Wednesday, when the April contract comes off the board.
He recommended natural gas for traders who think oil might be overdone here. Nat gas could be going higher on a serious concern about supply, he said.
Chesapeake Energy is a better nat gas play, Pete Najarian counterd. Don’t believe it? Ask the CEO. He’s been buying huge amounts of his own stock for the past two years, putting his money where his mouth is.
GOLD RUSHES PAST $1,000
The headline: Gold Closes Up $13.30 to $993.80 After Briefly Hitting Record $1,1001.50
Get long gold by way of the ETF (GLD) or the miners, Guy Adami said. Nucor (NUE), U.S. Steel (X) and Freeport-McMoRan (FCX) should get it done.
FCX is a buy on its copper production as well, Joe Terranova added, which he expects to be the next commodity to make a substantial move higher.
NATIONAL LAMPOON’S CHRYSLER VACATION
The headline:Chrysler To Shut Down for 2 Weeks in July in Effort to Cut Costs
This is a terrible sign, according to Guy Adami. He’s bearish on the automakers but said he would buy parts maker BorgWarner , which can benefit from growing overseas sales when American manufacturers cannot.
MIXED BAG FOR AMGEN
The headline: FDA Panel Backs Anemia Drugs for Cancer Patients, But Supports Some Restrictions
Amgen needed this news, even if it does come with strings attached, said Pete Najarian. The stock showed it, popping big time after the announcement.
OPTIONS ACTION: LOWE’S
The headline: Jon Najarian sees unusual options activity in housing retailer Lowe’s (LOW)
It looks like people are putting money back down in LOW, Pete Najarian said. The stock retreated to $21 after being up as high as $26 last month.
Guy Adami would rather play Home Depot (HD), which went from 424 to $30 in January then back to $26. He thinks it has another shot of hitting $30.
The headline:Electronic Arts Turns Hostile In $2 Billion Bid for Take-Two
Electronic Arts will bring the $26-per-share offer straight to Take-Two shareholders and give the company 10 days to respond. That should put the pressure on TTWO, Karen Finerman said. “The heat is on.”
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Trader disclosure: On Mar. 13, 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 (AAPL), (BIIB), ( C), (CSCO), (MS), (YHOO), (MSFT); Najarian Owns (FNM) Puts; Najarian Owns (DNA) Calls, (COP) Calls; Finerman Owns (GS); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (AAPL), (AEO), (FNM), (MSFT), (TSO), (VLO), (WMT), (YHOO), (SUN); Finerman's Firm Is Short (IJR), (IYR), (MDY), (SPY), (IWM), (COF), (LEH); Gartman Owns (COIN), (PBR), (GLD), (GWR), (SJT), (DE), (NFLX), (CQB), (SDS); Gartman Is Short (GM), (DRYS), (GOOG), (CME), (WFMI), (SWY), (ING); CIBC Gartman Index Owns Gold, The Euro, Sugar; GE Is The Parent Company Of CNBC