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Halftime: Gaming Goldman, Apple, Freeport McMoRan & More

The stock market struggled to get a foothold on Wednesday as losses in the healthcare and energy sector, offset gains in Apple and Morgan Stanley.

Meanwhile, Goldman Sachs dominated the headlines once again, as published reports suggested that the fraud charges it’s facing may not hold up – and even if they do, they may not open floodgates as some investors believed.

How should you be positioned now?

Instant Insights with the Fast Money Traders

Despite strong earnings from Morgan Stanley, I prefer long Goldman even with all the headwinds, says Jared Levy of Peak 6. I’d play it buy selling the June 145 puts in Goldman.

If and when financial regulation is passed, I’d be a buyer of Goldman Sachs the very next day, counsels Joe Terranova. Until then, I think the stock is stuck in a range between $150-$170.

Despite calls that this stock could slip to $100, technicals suggest to me Goldman has support around $152, says Todd Gordon of Forex.com. I think it can hold that level.

Elsewhere in financials I’m concerned about Europe as well as looming financial reform, adds Brian Kelly of Kanundrum. In their earnings report Moody’s talked about structured finance being very weak going forward. I’m short MCO .

Read More:
> Rotate Out Of Goldman And Into Morgan?

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APPLE LEADS TECH HIGHER

Shares of Apple soared higher on Wednesday after the tech titan crushed expectations on record iPhone sales; they also forecast strong revenue growth.

What’s the trade?

I’d play it downstream, counsels Brian Kelly. I like Sprint because of their leadership in 4G.

For a second derivative trade, I’d look at Skyworks, counsels Jared Levy.

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FREEPORT-MCMORAN BEATS BUT FALLS OVER 2%

On Wednesday miner Freeport McMoRan said that first-quarter profit soared as global demand for metals drove up the prices of copper, gold and molybdenum.

But despite the strong results shares of FreeportMcMoRan traded to the downside taking most of the metal names with it.

What’s the trade?

This stock was priced for perfection, explains Joe Terranova. That's why shares are down on Wednesday. Fundamentally I think there’s nothing wrong with this company and I’d hold it long term, he counsels.

Looking at the technicals, I’m concerned that this stock is broken, says Todd Gordon. It has broken through a technical support level of $82.50 and could now head to $70.25.

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NETFLIX 360
Considering shares of Netflix are up nearly 60% year to date, how should you game the stock into and after earnings on Wednesday?

Click here for Fast Money 360. Find out what fundamentals, technicals and insights from the options world all suggest lie ahead for this stock!

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UNDER THE RADAR: SRCL

Brian Kelly suggests putting Stericycle on your radar. Because this company disposes medical waste, he expects the company to be a beneficiary of the health care reform as more and more people begin getting coverage. He also likes the stock for it's exposure to emerging market growth and says valuations are attractive.

What's the bottom line?

Kelly thinks the stock could go to $60-$63.

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CALL THE CLOSE:

Joe Terranova : I think the market is at an inflection point, and my guess is that we go lower.

Brian Kelly: It’s a Teflon market and I’m a buyer.

Jared Levy: I’d begin examining out of the money call spreads as a hedge for long stocks.

Todd Gordon: I’m a short term buyer up to 1235 in the S&P. Then I'd get short.


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Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Apr 21, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Is Short June 2010 Crude Oil; Terranova Is Long December 2011 Crude Oil; Terranova Is Short Australian Dollar; Terranova Is Short Japanese Yen; Terranova Is Short Gold; Terranova Is Short (PCLN); Terranova Is Short (BRE); Terranova Is Long Japanese Yen; Terranova Owns (C), (XCO), (SWN), (TER), (HES), (AXP)

For JoeTerranova
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 Jared Levy
Peak6 Investments Is Long And Has An Options Position In (GS)
Peak6 Investments Is Long And Has An Options Position In (JPM)
Peak6 Investments Is Long And Has An Options Position In (BAC)
Peak6 Investments Is Long And Has An Options Position In (CBI)
Peak6 Investments Is Long And Has An Options Position In (WFC)
Peak6 Investments Is Long And Has An Options Position In (AAPL)
Peak6 Investments Is Long And Has An Options Position In (LLTC)
Peak6 Investments Is Long And Has An Options Position In (TXN)
Peak6 Investments Is Short And Has An Options Position In (MS)
Peak6 Investments Is Short And Has An Options Position In (XLF)
Peak6 Investments Is Short And Has An Options Position In (MCO)
Peak6 Investments Is Short And Has An Options Position In (STT)
Peak6 Investments Is Short And Has An Options Position In (RIMM)
Peak6 Investments Is Short And Has An Options Position In (BRCM)
Peak6 Investments Is Short And Has An Options Position In (SWKS)
Peak6 Investments Is Short And Has An Options Position In (FCX)
Peak6 Investments Is Short And Has An Options Position In (EBAY)
Peak6 Investments Is Short And Has An Options Position In (AMZN)
Peak6 Investments Is Short And Has An Options Position In (SBUX)
Peak6 Investments Is Short And Has An Options Position In (SRCL)
Peak6 Investments Is Short And Has An Options Position In (QQQQ)

For Brian Kelly
Kanundrum Capital Is Short (STT)
Kanundrum Capital Is Short (MCO)
Kanundrum Capital Is Short (DB)
Kanundrum Capital Owns (SRCL)

For Mark Mahaney
Citigroup Global Markets Or Affiliates Owns 1% Or More Of (NFLX)
Citigroup Global Markets Is A Market Maker In (NFLX)




CNBC.com with wires

Symbol
Price
 
Change
%Change
S&P 500
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FCX
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GS
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MCO
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MS
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NFLX
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S
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SRCL
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SWKS
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SPDR NRG SEL
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XLV
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AAPL
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