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Halftime Report: Market To Climb Then Tumble?

It appears getting the Dow to 11,000 and the S&P to 1200 will be an uphill battle for the bulls.

Not only is technology dented but Greece is back in the spotlight after reports surfaced that Athens wants to renegotiate a financial aid package.

Also, investors are also growing worried about the threat of higher interest rates as yields on the 10-year continue to rise in the bond market.

How should you be positioned now?

I don’t like the market broadly at current levels, says Eugene Profit of Profit Investments. I think it’s fairly valued and there are more opportunities from the short side than the long side.

I expect to see the S&P hit 1202 but then we’ll likely see the market capitulate down to 1150, adds JJ Kinahan of TD Ameritrade. I fully expect to be range bound for the summer.

I’m a buyer of the Nasdaq on Tuesday’s weakness, counsels JoeTerranova.

If you’re looking for buying opportunities, I’m bullish computer services and telecom, adds Eugene Profit. Take a look at Verizon. They have an attractive dividend yield and the potential demand for a Verizon iPhone could provide the stock with a nice tailwind.

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ENERGY TRADE: OIL

The energy trade continued to work on Tuesday as oil pushed toward the $90 market. Adding to the bullish momentum, Raymond James upgraded a number of the oil service names including Weatherford .

What’s the energy trade?

I’m bullish on the sector and I’d play it with a long position in the OIH , Joe Terranova says.

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TOPPING THE TAPE: METAL NAMES

The traders are keeping a close eye on the action in metals. US Steel, AK Steel and Steel Dyamics each rallied over 2% on Tuesday.

What’s the trade?

I’m very bullish on the American steel makers, says Jon Najarian.

In fact, the OptionMonster made his case in an exclusive post for this website! Read it now! Click here for US Steel Makers Priced Far Too Cheap, Says OptionMonster
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TRADING AMAZON

If you can't beat 'em, join 'em. That seems to be the marketing philosophy at Amazon which recently updated its free Kindle app to add compatibility for the iPad; and since the Kindle app is Universal, the same app will also run on iPhones.

JPMorgan likes the move; the bank put out a bullish note about Amazon saying the maker of the may rally on increased electronic book sales.

What’s the trade?

It seems to me that the market was playing Amazon from the short side, explains Joe Terranova, and now that trade is starting to unwind.

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GREEK BOND YIELDS SOAR TO 7.1%

As we mentioned above, concerns about Greece dragged down investor sentiment on Tuesday. According to published reports, Greece wants to renegotiate a financial aid package.

Fast Money contributor Brian Kelly of Kanundrum wrote about this issue at length in an exclusive post for our website. Click here for Greece Bailout Plan's 'Three Weak Links'


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FINANCIALS IN THE SPOTLIGHT

JJ Kinahan has spotted unusual options action in Allied Irish Bank and Bank of Ireland. The volume of calls trading in both names leads Kinahan to speculate that both stocks could make sharp moves higher.

Meanwhile, US financials traded in the green on Tuesday after Wells Fargo upgraded the large cap bank sector to market weight. According to analysts BofA and PNC are best positioned to benefit, going forward.

What’s the trade?

I’m seeing big block trading of options in WFC, C and JPM, explains Jon Najarian. That’s a bullish sign.

In the space, I’m watching the regional banks, says Joe Terranova. I think commercial real estate isn’t as bad as everyone had feared.

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BIG MONEY: MBI

The traders have spotted unusual activity in bond insurer MBIA.

According to Jon Najarian MBIA options have already traded at nearly 6 times their daily average.

To me that signals big investors are looking for more upside, says Najarian.

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CALL THE CLOSE

Joe Terranova: I’m a buyer of the Nasdaq.

Jon Najarian: I think the market drifts higher.

Eugene Profit: If there are no surprises from the bond market I think we go higher through the afternoon.

JJ Kinahan: I’m a buyer up to 1202.


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Trader disclosure: On Apr 6, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Kelly Owns (FXE) Puts; Kelly Owns (FRE); Profit And His Firm Own (AAPL); Profit And His Firm Own (RIMM); Profit And His Firm Own (JPM); Profit And His Firm Own (GS); Jon Najarian Owns (AMZN), Is Short (AMZN) Calls; Jon Najarian Owns (SLB), Is Short (SLB) Calls; Jon Najarian Owns (WFT), Is Short (WFT) Calls; Jon Najarian Owns (AA), Is Short (AA) Calls; Jon Najarian Owns (AKS) Call Spreads; Jon Najarian Owns (X) Call Spreads; Jon Najarian Owns (NUE) Call Spreads; Jon Najarian Owns (RTP) Call Spreads; Jon Najarian Owns (BHP) Call Spreads; Jon Najarian Owns (AAPL) Call Spreads; Jon Najarian Owns (RIMM) Call Spreads; Jon Najarian Owns (MBI); Jon Najarian Owns (C) Preferred; Jon Najarian Owns (BAC) Preferred; Jon Najarian Owns (JPM) Preferred; Jon Najarian Owns (MS) Preferred; Jon Najarian Owns (WFC) Preferred; Jon Najarian Owns (AAPL) Call Spreads; Jon Najarian Owns (CMC) Call Spreads; Jon Najarian Owns (FCX), Is Short (FCX) Calls; Jon Najarian Owns (GS), Is Short (GS) Calls; Jon Najarian Owns (PDE); Jon Najarian Owns (RIG), Is Short (RIG) Calls; Jon Najarian Owns (RIMM), Is Short (RIMM) Calls; Jon Najarian Owns (WMT) Preferred; Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC), (BAC) Preferred; Finerman's Firm And Finerman Own (JPM); Finerman Owns (PDE); Finerman's Firm And Finerman Own (RIG); Finerman's Firm Is Short (SPY); Finerman's Firm Owns (USO); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (WMT)

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 (XLU)
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 Brian Kelly
Kanundrum Capital Owns (AWI)
Kanundrum Capital Owns (NWL)
Kanundrum Capital Owns (CCI)
Kanundrum Capital Owns (CCJ)
Kanundrum Capital Owns (PTV)
Kanundrum Capital Owns (TSL)
Kanundrum Capital Owns (TXN)
Kanundrum Capital Owns (FNM)
Kanundrum Capital Owns (FRE)
Kanundrum Capital Owns (BX)
Kanundrum Capital Owns (GFI)
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short Treasuries
Kanundrum Capital Is Short Yen
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Pound

For Steve Cortes

Cortes Is Short Treasuries

For Doug Sipkin
Ticonderoga Securities Is A Market Maker In (LM), (TROW), (JNS), (BLK), (BEN)

For Ian Hague
Firebird Management Owns (LUK)
Firebird Management Owns (WBD)
Firebird Management Owns (NOD)
Firebird Management Owns TNKBP
Firebird Management Owns (BKGGF)
Firebird Management Owns (KKB)

For Regis Philbin
Regis Philbin Owns (BAC), (DIS), (EMC), (HES), (PHM), (PFE)
Regis Philbin Works For Disney

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