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Halftime Pt. 2: A Tech Rally Ahead?

Large technology companies could have a "decent rally," says Bill Fleckenstein of Fleckenstein Capital on Wednesday's Fast Money Halftime Report.

The hedge fund manager isn't sure how long it might last, but predicts earnings season to be better than people now think. Fleckenstein currently owns Microsoft and Microsoft calls.

"Microsoft has done poorly for a long time and that's why it's cheap," says Fleckenstein. "I think it's going to be hitting on all cylinders."

"I've said before, if you can't make money on Microsoft, then you're not making money on any plain vanilla stock," he says, adding he also likes Verizon right now.

Watch the video to hear other ways Fleckenstein says he's playing this market.

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CALL TO THE FLOOR: CLOUD COMPUTING PLAY BEATING MARKET

Shares of Terremark Worldwide are pushing higher, as the US government and the private sector alike switches its information technology services over to cloud computing platforms. The Miami-based company is currently outperforming the NASDAQ Composite with its stock up 10% year-to-date.

Perhaps the biggest catalyst for growth, CEO Manuel Medina told host Melissa Lee Wednesday, comes from the US government. Shortly after President Barack Obama took office in January 2008, the White House mandated that all federal agencies join the cloud, he says. To make it happen, the administration turned to Terremark. The telecom continues to operate several federal Websites, including USA.gov. Medina says 20% of Terremark's revenues comes from the government and he only expects it to grow.

The tech name is also looking to grow in the private sector, Medina says. Terremark provides services for such notable companies, like Akamai Technologies and Banco Santander .

What's the Trade?

"If there is one ray of hope in this whole economic mess we have," says Brian Kelly of Kanundrum Capital. "It is absolutely the switch to cloud computing."

His favorite name is Emulex , which is headquartered in Costa Mesa, Calif.

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CALL THE CLOSE

Patty Edwards of Storehouse Partners is cautiously watching the markets and will get long if she sees it on the highs.

Brian Kelly of Kanundrum Capital remains a seller.

Joe Terranova of Virtus Investment Partners is "aggressively" buying Goldman Sachs .

"I still think we go higher today," says Jon Najarian of optionMONSTER.com, adding that we could get into the 1050s.

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Trader disclosure: On July 7, 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 (BP) Puts; Kelly Is Short (GS); Jon Najarian Owns (JPM) Call Spreads; Jon Najarian Owns (GS) Call Spreads; Jon Najarian Owns (AAPL) Call Spreads; Jon Najarian Owns (BP) Call Spreads; Jon Najarian Owns (MSFT); Terranova Owns (BAC), (MRVL), (MYL), (MON), (APC), (GMCR), (AXP), (TER), (XCO), (GOOG), (AMZN), (GS), (CVS), (ABT), (HES), (ADI), (ADBE), (AKAM), (EMC); Edwards Owns (GLW) For Clients; Jon Najarian Owns (BK), (PNC)

For Brian Kelly
Accounts Managed By Kanundrum Capital Are Long Euro
Accounts Managed By Kanundrum Capital Are Short British Pound
Accounts Managed By Kanundrum Capital Are Short (XLK)
Accounts Managed By Kanundrum Capital Are Short (XLI)
Accounts Managed By Kanundrum Capital Are Short (XLY)
Accounts Managed By Kanundrum Capital Are Short (RKH)
Accounts Managed By Kanundrum Capital Are Short (XLF)
Accounts Managed By Kanundrum Capital Are Short (V)
Accounts Managed By Kanundrum Capital Are Short (BCS)

For Patty Edwards
Edwards Owns (SPY) For Clients
Edwards Owns (BAC) For Clients
Edwards Owns (C) For Clients
Edwards Owns (JPM) For Clients
Edwards Owns (MS) For Clients
Edwards Owns (WFC) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (AAPL) For Clients
Edwards Owns (INTC) For Clients
Edwards Owns (YHOO) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (WMT) For Clients
Edwards Owns (FFIV) For Clients
Edwards Owns VIX For Clients
Edwards Owns S&P 500 For Clients
Edwards Owns Nasdaq 100 For Clients
Edwards Owns Gold For Clients
Edwards Owns Silver For Clients
Edwards Owns Platinum For Clients

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 (CASS)
Virtus Investment Partners owns more than 1% of (LDR)
Virtus Investment Partners owns more than 1% of (LPHI)
Virtus Investment Partners owns more than 1% of (MGRC)
Virtus Investment Partners owns more than 1% of (XLB)
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 (XLK)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (SUBK)
Virtus Investment Partners owns more than 1% of (WDFC)
Virtus Investment Partners owns more than 1% of (YDNT)
Virtus Investment Partners owns more than 1% of (DRYS)

For Bill Fleckenstein:
Fleckenstein And His Fund Own (MSFT), (VZ), Gold

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