Strategy Session with the Fast Money Traders
The VIX is heading back down, explains Pete Najarian. Fear is going out of the market despite some terrible news including fraud. That’s impressive.
I think the comments from the White House put a floor under the market, muses Karen Finerman.
I have renewed confidence in the market, adds Guy Adami. I thought we’d be down big on the Madoff news but we weren’t. Personally, I think there’s a shot we go significantly higher next week.
In technology keep your eye on Hewlett Packard, IBM and Apple , counsels Najarian. The action in these stocks is interesting. However RIMM is having a tough time breaking over $40. And stay away from semiconductor stocks all together
The tailwinds for tech last year were the weaker dollar, adds Adami. And the dollar moved lower this week for the first time in a while. I think currency could be driving technology shares right now.
Tech generally has good balance sheets, add Finerman. Seems like a good place to be.
And keep an eye on Cree Inc adds Adami. There’s a huge short interest in the stock.
MAD'OFF' THE BOOKS
Investors scrambled on Friday to assess potential losses from the $50 billion fraud allegedly perpetrated by Bernard Madoff, a day after the arrest of the prominent Wall Street trader.
Prosecutors and regulators accused the 70-year-old former chairman of the Nasdaq Stock Market of masterminding a Ponzi scheme of epic proportions through a hedge fund he ran
I think the market understands that there was some terrible damage to the victims, but that it’s contained, says Tim Seymour. And keep in mind he was able to perform the fraud because he controlled every aspect of the business. That's quite unusual.
COMMODITIES WILD BUT GOOD WEEK
Oil prices settled nearly $2 lower on Friday after the collapse of a $14 billion rescue plan for U.S. automakers kept Wall Street and oil markets volatile.
Meanwhile, Goldman Sachs slashed its commodity price forecasts on Friday, citing a collapse in global economic growth and demand because of the credit crisis.
The U.S. bank which earlier this year predicted an oil price spike to $200 a barrel now expects to see crude average $45 a barrel next year.
We’ve had a wild ride in oil, adds Tim Seymour. And I think it will continue next week.
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Trader disclosure: On Dec. 12th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (FCX); Najarian Owns (DRYS) And Is Short (DRYS) Calls; Najarian Owns (NUE) And Is Short (NUE) Calls; Najarian Owns (UYG) Calls; Najarian Owns (XHB) Calls; Finerman's Firm Owns (DSX), (MSFT), (UNH), (IBB); Finerman's Firm Is Short (USO), (BBT), (COF), (IYR), (IJR), (MDY), (SPY), (IWM); Seymour Owns (AAPL), (BAC), (F), (INTC), (MER); Seygem Asset Management Owns (EEM)
CNBC.com with wires