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Melt-Up Rally No More?

On Thursday the Dow gave up a triple digit gain in an afternoon sell-off to close almost flat.

What should you make of this bearish intra-day reversal? How should you be positioned now?

Strategy Sessioin with the Fast Money traders

A number of stocks had outside down days, explains Tim Seymour. A lot of stocks that had been working such as US Steel, Apple and Cliffs were all thumped. That sent a bearish signal. And fundamentally, negative comments from Trichet didn't help.

I don’t think it’s the start of anything significant to the downside, muses Gary Kaminksy. I think the late day selling was a lot of programmed selling. The bullish trend that's been in place for the last several weeks has not changed.

But I do think it places the market on the defensive going into Friday’s open, muses Joe Terranova. On Friday the bulls will have to start buying early to propel the market higher.

I’m watching 1150 on the S&P, counsels Guy Adami. I’m curious to see if we test that level on Friday. And talking about Apple - at these levels if you’re long I’d take profits. You can get long again on a close above $232, he counsels.

Is the melt-up over? What do you think? We want to know!



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IS UNCLE SAM TAPPED OUT?

Prices of U.S. government debt fell on Thursday following a weak auction of $32 billion in seven-year Treasury notes.

The high yield on the auction came in at 3.37 percent, above the market's expectations.

"The auction went terribly," said Tom Simons, money market economist at Jefferies. "It appears the foreign bid was on the sidelines again as we approach Japanese year-end (March 31)."

Fresh worries about government bonds issued by Greece and Portugal contributed to investors' wariness of sovereign debt, analysts said

What’s the trade?

I’d play it with the BWX, counsels Tim Seymour.

Want more insights? Watch the video and hear from CNBC’s Steve Liesman.







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CAPITULATION SITUATION

The traders are keeping a close eye on on a handful of stocks as a barometer for the overall health of the recovery.

But are investors really bullish or are classic short squeezes really driving this sector?

Take a look:
Subtitle: 2 Month Performance
Citigroup +32%
Lululemon +34%
Garmin +18%
Liz Claiborne +44%


What’s the trade?

I would not be short Citi, counsels Gary Kaminsky. And I’m holding puts in Lululemon. They make great products but I don’t like the stock.

If you think the market has reached a peak, I’d be short Garmin, Seabridge, Liz Claiborne and Penn National Gaming , says Joe Terranova. People are out.

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AFTER HOURS ACTION: ORACLE

After the close Oracle reported a profit that rose over last year and topped what analysts were expecting from the company as revenue from new software licenses ratcheted higher for the second quarter in a row.

The business software giant reported earnings of 38 cents excluding one-time items for its fiscal third quarter, up from 35 cents a share in the same period last year.

Analysts who follow Oracle expected the company to earn 37 cents a share on sales of $6.349 billion, according to a consensus estimate compiled by Thomson Reuters.

Oracle is considered an industry bellwether and the report may stoke hopes that technology spending by businesses is on the mend.

What’s the trade?

We're seeing good numbers and bad stock action in the after hours, muses Guy Adami. Watch how the name trades on Friday.

In the space I’d look at SAP, says Tim Seymour.



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Trader disclosure: On March 25th, 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), (C); Kaminsky Owns (LULU) Puts; Terranova Is Short (GS), (CAL), (UAUA); Terranova Owns (QCOM); Terranova Owns (GLD) April Puts; Terranova Is Short May Crude Oil Futures; Seymour Owns (AAPL), (BAC), (MGM); Gordon Is Short Australian Dollar vs. Yen and U.S. Dollar; Tomasulo Owns (AMZN), (GS), (MSFT), (QCOM), (FCX), (XOM), (CAT), (MCD), (IBM); Tomasulo Is Long Gold Futures; Edwards Owns (UUP)

For Tim Seymour
Seygem Asset Management Owns (MTL)

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 (EXR)
Virtus Investment Partners Owns More Than 1% Of (GOK)
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 (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLI)

For Patty Edwards
Edwards Owns (AAPL) For Clients
Edwards Owns (AMZN) For Clients
Edwards Owns (AKAM) For Clients
Edwards Owns (BAC) For Clients
Edwards Owns (DELL) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (GS) For Clients
Edwards Owns (JPM) For Clients
Edwards Owns (MCD) For Clients
Edwards Owns (MS) For Clients
Edwards Owns (RIMM) For Clients
Edwards Owns (WFC) For Clients
Edwards Owns (WMT) For Clients
Edwards Owns (SPY) For Clients
Edwards Owns (QQQQ) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (JCG) For Clients
Edwards Owns (INTC) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (WFC) For Clients
Edwards Owns (SPY) For Clients
Edwards Owns (QQQQ) For Clients
Edwards Owns (GLD) For Clients

For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (AMAT)

For Anthony Scaramucci
Skybridge Owns (APL)


CNBC.com with wires

Symbol
Price
 
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DJIA
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S&P 500
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BWX
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C
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CLF
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LULU
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ORCL
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PENN
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SEA
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SAP
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X
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GRMN
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AAPL
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KATE
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