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Halftime Report: Lock In Tech Gains?

Monday, 21 Dec 2009 | 1:38 PM ET

Both the Dow and S&P traded higher on Monday buoyed by positive news in the health care sector, but it’s the action in tech that has the Fast Money traders truly excited.

Tech bulls drove the Nasdaq to a 2009 intra-day high after Barclays upgraded Intel to “overweight” citing the upcoming Consumer Electronics Show as a bullish catalyst. The call sparked a rally in other chip makers and ultimately drove technology shares higher, broadly.

Considering Monday's move, should you lock in gains?

Fast Money Halftime Report
The Fast Money traders share their market insight and midday trading advice.

Instant Insights with the Fast Money traders

I would not lock in gains, says Fast Money trader Joe Terranova. I would stay long technology.

I’m bullish too. I find that most of the gains in tech are being driven by strong fundamentals, adds Zach Karabell of RiverTwice.

I agree 100%, adds Option Monster Jon Najarian. And not just in tech. I also see strong fundamentals supporting metals, too.

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STEEL OUTPUT

In fact, all the traders are watching the action in metals.

Global crude steel production jumped year-on-year in November, posting a positive growth rate for a third month in a row as steelmakers continued to bring back idled capacity on improved orders.

What’s the trade?

It seems we’re getting new data points that underscore why the market is rallying, says Mike Khouw of Cantor Fitzgerald. This kind of data says to me that we’re seeing economic recovery and I think it continues.

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BANKS, BARRON’S BOUNCE

In the financials, the traders are poring over the December 21st issue of Barron's, which says that Citigroup, Bank of America, JPMorgan , and Wells Fargo all look appealing following a rough period for banking stocks.

The article goes on to say that outlook is "based on 'normalized earnings' they might earn, starting in 2012, and their stock-price/tangible-book-value ratios."

What’s the trade?

I’m watching the yield in the 10-year explains Joe Terranova. It looks like it’s poised to break out towards 4%. That says to me investors are demanding longer yield and that’s should be good for the financials.

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SECTOR TRADE: AG NAMES ROCKING

In ag, the traders are talking about the move by Goldman Sachs to upgrade Mosaic and add Potash to Goldman's conviction buy list. Goldman said they see the potash industry picking up momentum into 2010.

What’s the trade?

I’m a buyer and a true believer in the space, says Jon Najarian. I’d add to my position – not take profits.

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SNOWY SATURDAY

The traders were struggling to game retail on Monday after 'Super Saturday' ended up being Snowy Saturday this year.

Malls on the east coast were empty on Saturday as treacherous roads and near whiteout conditions kept many shoppers at home.

What’s the trade?

For me the trade in this space is Amazon, says Joe Terranova. $125 should be support. I’d be a buyer at that level.

I’m took profits in Amazon at $140, reveals Zach Karabell but I'm looking to get back in and I’d stick with it long term.

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FAST & FURIOUS: THE KEY QUESTIONS INTO THE CLOSE

BUY DOLLAR? With the dollar slightly weaker today following a strong week, should you get in?

I expect to see the dollar resume a longer term down trends, says Joe Terranova

BUY INTC? Considering Barclays upgraded Intel , should you get in?

I think Intel looks attractive, says Mike Khouw.

BUY AA?Alcoa traded higher Monday after Morgan Stanley upgraded it to overweight; should you buy?

After the pop, I’m not a fan anymore, says Zach Karabell.

BUY TOY NAMES? BMO upgraded toy names Mattel and Hasbro; should you get in?

I’d take profits on the move, counsels Jon Najarian.

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CALL THE CLOSE

Jon Najarian: I’m a buyer; and watching BIIB closely.

Zach Karabell: I’m a buyer but I’d be careful of the January effect.

Mike Khouw: I think the market is heading higher into the end of the year.

Joe Terranova: I continue to love the market.


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Trader disclosure: On December 21st, 2009, 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); Seymour Owns (AAPL), (AA), (BAC), (ETFC), (INTC); Finerman Owns (AAPL), (GOOG); Finerman's Firm Owns (MSFT), (NDAQ), (SKS), (TGT), (WMT), (BDX), (BCR); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (TLT); Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spread; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (CVS); Finerman's Firm And Finerman Own (WFC) Preferred

For Tim Seymour
Seygem Asset Management Owns (CZZ)


For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)

For Mark Mahaney
Citi Employees Own (YHOO), (GOOG)
Citigroup Global Markets Or Affiliates Owns 1% Or More Of (YHOO), (PCLN), (NFLX), (AKAM)
Citigroup Global Markets Or Affiliates Expects To Receive/Seek Investment Banking Compensation from (EBAY) In Next 3 Months
(EBAY) Is Or In Past 12 Month Was An Investment Banking Client Of Citigroup Global Markets
(AMZN), (EBAY), (YHOO), (GOOG) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Securities-Related)
(AMZN), (EBAY), (YHOO), (GOOG), (EXPE) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Non-Securities-Related)
Citigroup Global Markets Is A Market Maker In (AMZN), (EBAY), (YHOO), (EXPE), (PCLN), (NFLX), (AKAM), (GOOG)
Citigroup Global markets And/Or Affiliates Has A Significant Financial Interest In Relation To (EBAY), (YHOO), (EXPE), (GOOG)
Citigroup Global Markets Or Affiliates Owns 2% Or More Of (YHOO)

For Gene Munster

Piper Jaffray Is A Market Maker In (AAPL), (GOOG), (YHOO), (AMZN), (EBAY)



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