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Dow In Striking Distance Of 11,000

Tuesday, 23 Mar 2010 | 5:37 PM ET

* This post was updated on Apr, 12, 2010. A past version wrongly identified the Under-The-Radar stock as Rockwell Collins when it should have said Rockwell Automation.

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Investors indulged in an "afternoon delight" on Tuesday as bulls chased stocks in another late day rally.

The Dow is now up 10 out of 11 days and within striking distance of 11,000.

An interesting pattern is emerging, each time the market has staged an afternoon rally over the past week, it first appears ready to roll over around lunchtime, fraught with overseas concerns.

But then the market shakes off those concerns after lunch -- when overseas markets close -- and it charges higher.

Word on the Street
The Fast Money traders take a look at today's top business stories.

What must you know before you place your next trade?

This is the market melt up that I was telling you about, says veteran trader Gary Kaminksy. I expect it to last through the end of the quarter.

In the late afternoon technology really melted higher, muses Pete Najarian. I’m talking names like Intel. That’s well worth watching.

It seems to me that the S&P is heading to 1230, speculates Tim Seymour. I’m a buyer of dips.

I’m more focused on Europe, says Steve Cortes of Veracurz. I think the crisis overseas gets worse. I’d be a seller of the euro . Or you can play it as a buyer of the EPV.

And I’d steer clear of American companies that have big exposure to the European consumer; names such as 3M and Procter & Gamble, Cortes adds.

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AFTER HOURS ACTION: CORZINE

If you’ve wondering what’s a governor to do after losing an election, wonder no more.

CNBC has learned that former NJ Governor Jon Corzine has joined MF Global as its CEO and Chairman. (As you may remember he was also a fomer Goldman CEO.)

On the news, MF shares popped about 10% in the after market.

Jon Corzine certainly brings a new vision and that could generate new interest in the stock, muses Joe Terranova.

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HEALTH CARE DAY 2 DEBATE

The traders are closely watching the action in health care stocks with Aetna , Walgreen and CVS all closing higher.

Are we looking at a relief rally or will reform really boost some areas of this industry? What’s the trade?

I think the pharmacy benefit managers benefit from the reform, counsels Gary Kaminksy. In the space I like Walgreen’s.

If the market stays well supported I think we see money flow into the HMO stocks, muses Joe Terranova. But personally, I’m afraid of all the uncertainty in the space.

If you’re looking to play generic drug makers look at Mylan , Teva and Watson counsels Pete Najarian. And Walmart is also a play because of their in-store pharmacies.

In the space I like Pfizer, counsels Brian Kelly. It’s been lagging but I think it could catch up.

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UPDATED 4/12: UNDER-THE-RADAR ROCKWELL AUTOMATION

Pete Najairan has spotted unusual options action in Rockwell Automation.

The heavy call activity in this stock suggests to Najarian it could make a sharp move higher.


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OLD VERSION OF THE POST IS BELOW

Investors indulged in an "afternoon delight" on Tuesday as bulls chased stocks in another late day rally.

The Dow is now up 10 out of 11 days and within striking distance of 11,000.

An interesting pattern is emerging, each time the market has staged an afternoon rally over the past week, it first appears ready to roll over around lunchtime, fraught with overseas concerns.

But then the market shakes off those concerns after lunch -- when overseas markets close -- and it charges higher.

Word on the Street
The Fast Money traders take a look at today's top business stories.

What must you know before you place your next trade?

This is the market melt up that I was telling you about, says veteran trader Gary Kaminksy. I expect it to last through the end of the quarter.

In the late afternoon technology really melted higher, muses Pete Najarian. I’m talking names like Intel. That’s well worth watching.

It seems to me that the S&P is heading to 1230, speculates Tim Seymour. I’m a buyer of dips.

I’m more focused on Europe, says Steve Cortes of Veracurz. I think the crisis overseas gets worse. I’d be a seller of the euro . Or you can play it as a buyer of the EPV.

And I’d steer clear of American companies that have big exposure to the European consumer; names such as 3M and Procter & Gamble, Cortes adds.

-------

AFTER HOURS ACTION: CORZINE

If you’ve wondering what’s a governor to do after losing an election, wonder no more.

CNBC has learned that former NJ Governor Jon Corzine has joined MF Global as its CEO and Chairman. (As you may remember he was also a fomer Goldman CEO.)

On the news, MF shares popped about 10% in the after market.

Jon Corzine certainly brings a new vision and that could generate new interest in the stock, muses Joe Terranova.

-------

HEALTH CARE DAY 2 DEBATE

The traders are closely watching the action in health care stocks with Aetna , Walgreen and CVS all closing higher.

Are we looking at a relief rally or will reform really boost some areas of this industry? What’s the trade?

I think the pharmacy benefit managers benefit from the reform, counsels Gary Kaminksy. In the space I like Walgreen’s.

If the market stays well supported I think we see money flow into the HMO stocks, muses Joe Terranova. But personally, I’m afraid of all the uncertainty in the space.

If you’re looking to play generic drug makers look at Mylan , Teva and Watson counsels Pete Najarian. And Walmart is also a play because of their in-store pharmacies.

In the space I like Pfizer, counsels Brian Kelly. It’s been lagging but I think it could catch up.

-------

UNDER-THE-RADAR ROCKWELL COLLINS

Pete Najairan has spotted unusual options action in Rockwell Collins .

The heavy call activity in this stock suggests to Najarian it could make a sharp move higher.



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Trader disclosure: On March 23, 2010, 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 (AA) Call Spread; Najarian Owns (AKS) Call Spread; Najarian Owns (CLF) Call Spread; Najarian Owns (TCK); Najarian Owns (TEVA); Najarian Owns (MYL); Najarian Owns (F) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (TIE) Call Spread; Najarian Owns (YHOO) Call Spread; Najarian Owns (BAC) Call Spread; Najarian Owns (C) Calls; Najarian Owns (F) Calls; Najarian Owns (RHT) Calls; Najarian Owns (TIE) Calls; Najarian Owns (YHOO) Call Spread; Terranova Is Short (CAL), (UAUA), (GOOG), (GS); Terranova Owns (QCOM), (APA), (TER), (BEAV), (AMSC); Terranova Owns (GS) Puts; Terranova Is Long Crude Oil May Futures; Cortes Is Short Euro; Grasso Owns (AAPL), (ABK), (ASTM), (BA), (BAC), (BGP), (C), (COST), (CSCO), (PFE), (PRST), (WMT), (JPM), (NEM); Edwards Owns (TM); Edwards Owns (AAPL) For Clients; Edwards Owns (F) For Clients; Edwards Owns (CSCO) For Clients; Edwards Owns (GOOG) For Clients; Edwards Owns (JCG) For Clients; Edwards Owns (INTC) For Clients; Edwards Owns (MSFT) For Clients; Edwards Owns (QQQQ) For Clients; Edwards Owns (RIMM) For Clients; Edwards Owns (SPY) For Clients; Seymour Owns (AAPL), (BAC), (BX), (CHL), (TIE); Seygem Asset Management Owns (VALE)

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