The confusion is palpable on the Street as investors grapple with conflicting signals about whether this bull market is over or getting its second wind.
On Tuesday the Dow posted its largest one-day percentage gain in three months largely due to reports that a bailout was in the works for Greece.
But, just one day earlier it closed 200 points lower on fears weakness in Europe was widespread.
Was Tuesday’s market action simply a relief rally or are bulls off and running again?
Strategy Session with the Fast Money traders
There's no doubt that Greece is the word, says Guy Adami. It's certainly influencing trade here in the U.S. Looking at the market broadly I thought the action was okay on Tuesday - clearly a lot of stocks were oversold. But banks didn't trade that well.
According to EU rules the ECB can not bailout a single member country -- however a single nation can, explains Tim Seymour. Personally, I find it hard to believe Germany is going to bailout out Greece – which is the market speculation. But I do think Greece will muddle through somehow, he adds.
However, as an investor I'd make sure to focus on other things, too; there are still broad concerns about the economy, domestically. Don’t forget we had strong earnings and stocks didn’t rally, Seymour says. Because of that -- if you’re a short term trader and want to ride the rally I think there’s probably 24 hours left. It expect the S&P will have trouble getting above 1080, Seymour says.
If you’re looking for a market ‘tell’ keep your eye on Goldman , says Pete Najarian. The second anything negative in the market comes up, Goldman tends to be among the first to react. And if you’re looking to trade financials, it’s important to know the charts of Goldman as well as Morgan appear to be broken.
Although I agree there’s been a lack of participation among the financials I’m longJPMorgan , says Joe Terranova. That one stock looks attractive to me. And I’d be careful of trading stocks that are too tethered to the dollar, he adds. The euro is moving the dollar and that could cause havoc.
If you’re looking for a trade I’d put Petrobras on the radar, adds Najarian. I’m seeing a large volume of put buying in this name which I think is protection buying.
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TOPIC: AFTER HOURS ACTION: DISNEY
In extended trade shares of Disney climbed modestly, after both sales and profits beat forecasts.
The media and entertainment conglomerate reported that it earned 47 cents a share in its fiscal first quarter, excluding one-time items, compared with 41 cents a share a year earlier.
Revenue jumped to $9.74 billion, up from $9.6 billion a year before.
A group of analysts polled by Thomson Reuters forecast earnings on average of 38 cents a share on $9.646 billion in revenue for Disney.
What’s the trade?
I’d increase my position in this stock over time, says Pete Najarian. I expect to see growth over the next quarter but Disney is a long term investment.
I agree that Disney is a name that you’d want to be in, says Guy Adami.
Disney is a qulaity name that performs over time, adds Joe Terranova.
> For complete coverage of Disney earnings click here
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Trader disclosure: On February 9th, 2010, 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), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Owns (JPM), (JPM) Feb. Call Spreads, (JPM) Feb. Calls; Terranova Owns (DELL), (EMC), (MSFT), (AAPL), (OIH); Terranova Owns (GOOG), Is Short (GOOG) Feb. calls; Pete Najarian Owns (AAPL) Call Spread; Pete Najarian Owns (DIS), Is Short (DIS) Calls; Pete Najarian Owns (MGM) Call Spread; Pete Najarian Owns (MS), Is Short (MS) Calls; Pete Najarian Owns (TCK), Is Short (TCK) CallsPete Najarian Owns (XLF) Calls; Pete Najarian Owns (PBR) Puts; Pete Najarian Owns (BTU) Call Spread; Seymour Owns (MPEL), (AAPL), (BAC), (EEM), (F), (FXI), (LVS), (MGM), (MSFT)
For Tim Seymour
Seygem Asset Management Owns (PBR)
Seygem Asset Management Is Short (BIDU)
Seygem Asset Management Owns (FCX)
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 (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (SKT)
For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (SPY)
Cantor Fitzgerald & Co. Is A Market Maker In (LVS)
Cantor Fitzgerald & Co. Is A Market Maker In (MGM)
Cantor Fitzgerald & Co. Is A Market Maker In (WYNN)
Cantor Fitzgerald & Co. Is A Market Maker In (GOOG)
Cantor Fitzgerald & Co. Is A Market Maker In (BIDU)
Cantor Fitzgerald & Co. Is A Market Maker In (YHOO)
Cantor Fitzgerald & Co. Is A Market Maker In (MSFT)
Other Relevant Disclosures:
Najarian Owned (DIS) And Was Short (DIS) Calls Today
Jon Najarian Owns (DIS)
CNBC.com with wires
