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Halftime: European Storm Gathering?

Stocks spent much of Wednesday swinging between gains and losses as investors weighed fears about Greece against better than expected earnings.

On the positive side, earnings season remained in high gear with Dow and Corning beating Street expectations.

On the negative side - despite new details about an aid package - investors worried that troubles in Greece may be an early sign of a growing debt crisis across Europe. Some went so far as to question whether the euro currency can survive these developments.

"The one who has the incentive to leave is Germany" says Brian Kelly of Kanundrum.

"The size of the aid package hopefully puts the issue of contagion to rest, but only time will tell," says Henry Smith, chief investment officer at Haverford Trust in a Reuters interview.

What’s the trade?

Instant Insights with the Fast Money traders

I’m keeping a close eye on developments overseas, says Brian Kelly of Kanundrum. It's important to note that also on Wednesday S&P downgraded Spain's ratings to AA with a negative outlook. (That comes in the wake of weakness in both Greece and Portugal.)

Looking at the big picture - the worry I have is that the contagion spreads to the UK and Japan, he adds. The problem with that is their debt loads are so big it would become a global problem. But that's the worst case scenario.

I’m playing it short the euro and I’d think about shorting the British pound, Kelly says. Also I’d look at shorting the big European banks such as Deutsche and Barclay’s .

I’d also short the euro , says Jared Levy of Peak6. Technicals in the charts of the euro suggest to me it’s going lower.

A weaker euro means a strong dollar; that’s what I’m watching counsels Patty Edwards of Storehouse Partners. Going forward, if you play multi-nationals - it will be very important to truly understand where a company makes the bulk of its money.

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TOPPING THE TAPE: FINANCIALS

Following Wednesday’s sell off, the traders are also closely watching the action in banks ; especially Goldman Sachs.

What’s the trade?

I got out of Goldman and I’m staying on the sidelines, says Patty Edwards. There’s still too much uncertainty. If you want to play the space, I’d look at Wells Fargo.

At the end of the day I think we look back and say Goldman stock is cheap right now, says Jared Levy.

This isn’t going to be the only case against Goldman, counters Brian Kelly. There’s never just one cockroach. I’d bet GS stock goes lower.

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WILL BLANKFEIN SURVIVE?

Following Wednesday’s 10-hour and 43-minute hearing, one question many investors are asking is -- will Goldman CEO Lloyd Blankfein survive?

What must you know?

Lloyd Blankfein will not be the CEO of Goldman Sachs at the end of the year, predicts Gary Kaminksy. But it’s not because of the senate hearings. Goldman is a company that doesn’t likes the headlines.

The company is bigger than any individual and Blankfein has become too much of a story, Kaminksy explains.

I expect to see the company go back to investment banking and the way they will send that message is with a new CEO, Kaminksy speculates. It’s symbolic.

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TAKE YOUR POSITION: VISA AFTER THE BELL

The traders are closely watching credit card heavyweight Visa, which is set to report earnings after the bell today.

Following stellar numbers from Capital One and American Express, should you get into this name ahead of the results?

I think the valuations in Visa are a little high, muses Patty Edwards. Instead I’d look at American Express which trades at a much lower multiple.

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UNUSUAL ACTIVITY: CITRIX

Jared Levy has spotted unusual options action in Citrix.

The volume of June 50 calls combined with positive chatter suggests to Levy this stock could make a sharp move higher.

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CALL THE CLOSE:

Brian Kelly: I’m a seller.

Patty Edwards: I’m a buyer selectively.

Jared Levy: I’d nibble long.

Mike Gurka: I like EM and I’d play it long copper.


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Trader disclosure: On Apr 28, 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 (AUY) Calls; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman's Firm Is Short (IWM), (MDY), (IJR); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leap; Finerman Owns (BAC), (BAC) Preferred; Finerman Owns (GOOG); Finerman's Firm And Finerman Own (JPM); Finerman's Firm Owns (MHK); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (GLW); Seymour Owns (AAPL), (BAC), (POT); Scaramucci Owns (PFE), Skybridge Owns (PFE)

For Tim Seymour:
Seygem Asset Management Owns (POT)

For Dennis Gartman
Funds Managed By Dennis Gartman Own Gold
Funds Managed By Dennis Gartman Own (FXI)
Funds Managed By Dennis Gartman Are Short Sterling
Funds Managed By Dennis Gartman Are Short Yen
Funds Managed By Dennis Gartman Are Short Euro

For Brian Kelly
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Owns (TLT)
Kanundrum Capital Owns (NTES)
Kanundrum Capital Owns (AWI)
Kanundrum Capital Is Short (FDX)
Kanundrum Capital Is Short (CLF)
Kanundrum Capital Is Short (BCS)
Kanundrum Capital Is Short (DB)
Kanundrum Capital Is Short (MCO)
Kanundrum Capital Is Short (STT)
Kanundrum Capital Is Short (IVZ)
Kanundrum Capital Is Short (USO)
Kanundrum Capital Is Short (RSX)
Kanundrum Capital Is Short (EWH)
Kanundrum Capital Is Short (EWY)
Kanundrum Capital Is Short (FXI)

For Patty Edwards
Edwards Owns (DOW) For Clients
Edwards Owns (C) For Clients
Edwards Owns (BAC) For Clients
Edwards Owns (MS) For Clients
Edwards Owns (JPM) For Clients
Edwards Owns (WFC) For Clients
Edwards Owns (V) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (YHOO) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (INTC) For Clients
Edwards Owns (SPY) For Clients
Edwards Owns (QQQQ) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (PGM) For Clients
Edwards Owns (HD) For Clients
Edwards Owns (PCL) For Clients
Edwards Owns (AAPL) For Clients
Edwards Owns (MCD) For Clients

For Jared Levy
Peak6 Investments Owns And Has An Options Position In (DOW)
Peak6 Investments Owns And Has An Options Position In (CMCSA)
Peak6 Investments Owns And Has An Options Position In (GLW)
Peak6 Investments Owns And Has An Options Position In (S)
Peak6 Investments Owns And Has An Options Position In (TLT)
Peak6 Investments Owns And Has An Options Position In (C)
Peak6 Investments Owns And Has An Options Position In (BAC)
Peak6 Investments Owns And Has An Options Position In (GS)
Peak6 Investments Owns And Has An Options Position In (JPM)
Peak6 Investments Owns And Has An Options Position In (WFC)
Peak6 Investments Owns And Has An Options Position In (V)
Peak6 Investments Owns And Has An Options Position In (COF)
Peak6 Investments Owns And Has An Options Position In (YHOO)
Peak6 Investments Owns And Has An Options Position In (MSFT)
Peak6 Investments Owns And Has An Options Position In (LOW)
Peak6 Investments Owns And Has An Options Position In (WY)
Peak6 Investments Owns And Has An Options Position In (AAPL)
Peak6 Investments Is Short And Has An Options Position In (CMCSK)

Peak6 Investments Is Short And Has An Options Position In (XLF)
Peak6 Investments Is Short And Has An Options Position In (MS)
Peak6 Investments Is Short And Has An Options Position In (MA)
Peak6 Investments Is Short And Has An Options Position In (BIDU)
Peak6 Investments Is Short And Has An Options Position In (GOOG)
Peak6 investments Is Short And Has An Options Position In (NTES)
Peak6 Investments Is Short And Has An Options Position In (HD)
Peak6 Investments Is Short And Has An Options Position In (PCL)
Peak6 Investments Is Short And Has An Options Position In (AWI)
Peak6 Investments Is Short And Has An Options Positoin In (CTXS)
Jared Levy had put in an order to buy (GS) as of Halftime Report but did not yet own shares.

For Whitney Tilson
Funds Managed By Whitney Tilson Are Short (PALM)

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