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Position For A Jobless Recovery?

On Friday investors were shifting into and out of positions as evidence mounted that we may be looking at a jobless recovery.

As expected the latest data from the Labor Department showed employment fell for a second straight month with the economy shedding 131,000 jobs in July as more temporary government work ended.

However, the data that really rattled investors came in the form of private employment numbers, considered a better indicator of the health of the labor market. Private employers added just 71,000 jobs, well short of the 90,000 expected by economists.

Meanwhile, the unemployment rate remained unchanged at 9.5 percent.

On the news, investors ran for the exits, especially in consumer stocks with the data adding to concerns that shoppers are growing less and less willing to open their wallets – whether they have jobs or not.

How should you be positioned now?

Instant Insights with the Fast Money traders

What I think is telling is that the S&P traded beneath its 200-day moving average of 1,115 and then rallied to close above that key technical level, explains Steve Grasso. That's important. It’s something that I talked about on the Halftime Report. Steel, coal, and other risk-on trades stayed strong and ultimately kept the market buoyant.

I think long resource names is the way to play the market into the end of the year, says Joe Terranova.

Looking at the employment reports, most retailers will likely come under pressure in this environment, says Patty Edwards. However the trade-down trade still works. I'd look at McDonald’s and Target .

In retail I like TJX , says Karen Finerman and you might even want to consider Tiffany. There’s still demand in the high end space.

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WHEAT PARES GAINS AFTER MONSTER WEEK

The traders are closely watching the action in wheat after Russia said it would temporarily halt grain exports.

As we told you on Thursday Prime Minister Vladimir Putin called for a ban on grain exports, with a spokesman later saying it would go into effect beginning August 15 and would apply to contracts that had been already signed.

However one day after the news hit the Street, the spot price of wheat traded lower?

What should you make of it?

We’re probably seeing some profit taking but I like the wheat story, says Joe Terranova. It speaks to demand from emerging markets. I’m a buyer of this story on a dip. I’m long Potash and Mosaic .



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Trader disclosure: On August 6th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Pete Najarian owns (CTRP) calls; Pete Najarian owns (DD) short calls; Pete Najarian owns (MCD) calls; Pete Najarian owns (CF) calls; Pete Najarian owns (RIMM) call spread; Terranova owns (AKAM), (APA), (BAX), (COP), (FCX), (GS), (MOS), (MSFT), (PFE), (POT), (SU), (XBI); Grasso owns (ASTM), (ABK), (BA), (BAC), (BGP), (C), (CSCO), (DYN), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST); Finerman owns (AAPL); Finerman's firm owns (ARM); Finerman’s firm owns (BBY); Finerman's firm owns (LEA); Finerman’s firm owns (KFT); Finerman & Finerman's firm owns (RIMM); Finerman’s firm owns (TSX); Finerman’s firm owns (GYMB); Finerman’s firm owns (PLCE); Finerman's firm owns (WMT); Finerman's firm owns (DAN); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (DRYS)
Virtus Investment Partners own more than 1% of (EXR)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (XLK)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)

For Patty Edwards
Edwards owns (WMT) for clients
Edwards owns (COST) for clients
Edwards owns (MCD) for clients
Edwards owns (SBUX) for clients
Edwards owns (KFT) for clients
Edwards owns (GIS) for clients
Edwards owns (DD) for clients
Edwards owns (BRK.B) for clients
Edwards owns (RIMM)
Edwards owns gold for clients
Edwards owns platinum for clients
Edwards owns silver for clients
Edwards owns the Russell 2000 for clients
Edwards owns the S&P500 for clients

For Steve Grasso:
Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (DHR)
Stuart Frankel & Co and it’s partners own (DYN)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TBT)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)

For Anthony Scaramucci
Scaramucci and SkyBridge Capital own (AAPL)
Scaramucci and SkyBridge Capital own (KO)

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