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Fast Money Buying Into Close

A late afternoon buying spree erased a triple digit loss in the Dow , sending stocks higher for the day.

Like a good thriller, the ending wasn’t what most investors expected.

Early in the session, Corporate America announced a slew of billion dollar deals but the M&A mania couldn’t get the bulls to budge.

Then, a big buyer came into the market Monday afternoon and scooped up tech options. The move sent bargain hunters into a frenzy.

Buyers even shrugged off the action in oil , which tumbled, below the psychologically important $70/barrel level on Monday on concerns of a global slowdown.

What gives? What must you know?

Strategy session with the Fast Money traders

I’m seeing big buying is in the XLK, says Pete Najarian. There’s heavy call buying in this space. It seems these investors think enough is enough. Fundamentally they seem to like the tech story. It’s been beaten up.

I was impressed by Monday's market action. When I think about all the headwinds going into Monday’s session things could have gone very far south. For example, copper made a dramatic move lower.

The move in copper was likely triggered by weakness in China which dropped sharply overnight, explains Joe Terranova.

And when copper broke below $3 puts in Freeport McMoRan absolutely exploded, adds Najarian.

Looking at the market broadly, 1110 held in the S&P, adds Guy Adami. I think the market could pop perhaps up to 1165 on a technical bounce.

And looking at the crude market, I think the outlook for oil is bearish, adds Adami. Not only because of what’s happening in Europe but also because planes were grounded again due to volcanic ash in the atmosphere.

I covered shorts in Deere, Nucor , Cliffs and FedEx, reveals Brian Kelly. I agree that we may be looking at a technical bounce. However, I'll probably put these shorts on again down the road. What’s happening in Europe is long-term problematic.

If you're looking for a trade, I see value in the big caps, adds Finerman. I’m looking at Walmart and JPMorgan though in the latter I’m playing it with options so I can limit my downside risk.

I’d use this opportunity to make a shopping list, adds Adami. When your favorite names hit attractive levels, I’d hold my breath and buy.

McDonald’s may be a name like that, adds Najarian. I’d put it on the radar.

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MERGER MONDAY FAILS TO LIFT STOCKS

Despite Merger Monday being in full effect today with over $7 billion in deals, stocks were unable to rally.

Is this a bearish sign for the overall markets?

As far as I’m concerned, we should have had a much strong equity market in the wake of these events, says Gary Kaminsky.

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STREET FIGHT: GOLD DEBATE

The traders have been largely bullish on gold because they don’t see a scenario in which the precious metal trades lower.

If the economy gets better, you get inflation and that’s good for gold, says Brian Kelly. And if the economy gets worse and everything falls apart, that’s also good for gold.

But Steve Cortes of Verazcuz doesn’t see it that way. He think gold is about to make a sharp turn lower.

What's got him concerned? Watch the video above and find out!



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Trader disclosure: On May 17, 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 Owns Gold; Terranova Owns (PFE), (GLD), (TER), (YHOO), (AXP); Terranova Is Short (X), (GOOG); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman's Firm Is Short (IJR), (IWM), (MDY), (SPY); 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 (HPQ); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM); Finerman's Firm Owns (TGT); Finerman Owns (WFC) Preferred; Finerman's Firm Owns (WMT); Najarian Owns (AMD) Calls; Najarian Owns (AKAM) Call Spread; Najarian Owns (C) Calls; Najarian Owns (F) Calls; Najarian Owns (GOOG) Calls; Najarian Owns (HPQ), Is Short (HPQ) Calls; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (MCD) Call Spread; Seymour owns (INTC); Jon Najarian owns (DKS); Zach Karabell owns (ATHR); Grasso Owns (BP), (NDAQ), (DYN), (LPX), (ASTM), (ABK), (BAC), (BGP), (C), (CVGI), (JPM), (PRST), (PFE), (BA), (T), (CSCO)

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 (AMKR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
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 (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Brian Kelly
Kanundrum Capital Owns (GFI)
Kanundrum Capital Owns (GLD)
Kanundrum Capital Owns (TLT)
Kanundrum Capital Owns (AUY)
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short British Pound
Kanundrum Capital Is Short Swiss Franc
Kanundrum Capital Is Short (XLK)
Kanundrum Capital Is Short (XLI)
Kanundrum Capital Is Short (XLV)
Kanundrum Capital Is Short (XLY)
Kanundrum Capital Is Short (HBC)
Kanundrum Capital Is Short (XLF)


For Steve Grasso
Stuart Frankel And Its Partners Are Short (QQQQ)
Stuart Frankel And Its Partners Are Short (CL)
Stuart Frankel And Its Partners Are Short (AAPL)
Stuart Frankel And Its Partners Own (AMR)
Stuart Frankel And Its Partners Own (BAX)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (CUBA)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (GERN)
Stuart Frankel And Its Partners Own (HSPO)
Stuart Frankel And Its Partners Own (MERC)
Stuart Frankel And Its Partners Own (NWS.A)
Stuart Frankel And Its Partners Own (NYX)
Stuart Frankel And Its Partners Own (PALM)
Stuart Frankel And Its Partners Own (PDE)
Stuart Frankel And Its Partners Own (PFE)
Stuart Frankel And Its Partners Own (PRST)
Stuart Frankel And Its Partners Own (RDC)
Stuart Frankel And Its Partners Own (TLM)
Stuart Frankel And Its Partners Own (XRX)
Stuart Frankel And Its Partners Own (SDS)
Stuart Frankel And Its Partners Are Short (QQQQ)
Stuart Frankel And Its Partners Are Short (CL)
Stuart Frankel And Its Partners Are Short (AAPL)

For Daniel Amir, Lazard Capital Markets Analyst
Lazard Capital Markets LLC is a market maker in (CREE)

For Steve Cortes
Cortes Is Short Gold, Silver
Cortes Is Long Euro

For Paul Hickey
Hickey Owns (BAC)
Hickey Owns (C)

For Ananda Baruah
Brean Murray, Carret & Co. Is A Market Maker In (DELL)

Other Relevant Disclosures:
Terranova Owned (YHOO) On 4/8/10



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