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Halftime: Is Technology Starting To Look Good?

Stocks edged higher on Wednesday after a handful of positive developments trumped recent investor pessimism.

A weaker dollar lifted energy and materials stocks while more M&A speculation forced the shorts to think twice.

But ontop of the broad move higher, the Fast Money traders were also focused on the strength in the Nasdaq which moved higher despite high profile downgrades of two bellwethers -- Intel and HP. (Click here to read more about the downgrades.)

How should you position now?

Instant Insights with the Fast Money traders

Tech seems to be outpacing the S&P, muses Steve Cortes of Veracruz. I’m particularly interested in the action in semiconductors - especially Altera, which raised guidance on Tuesday. The stock was up after hours then got hit very hard only to trade up again. That suggests investors are reaching for troubled sectors such as the semiconductors. I’m looking to deploy capital in this space.

I also think technology looks good and I’m one of those buyers who’s helping turn the market around, reveals Joe Terranova. I believe market leadership comes from technology. In the space, I like long Apple, he adds. I believe it goes to $300 before the end of the year.

I’m surprised that tech is doing so well when PC demand and chip demand is lower, muses Brian Kelly. That’s a little strange.

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FAST FLASH: PRECIOUS METALS

The traders are keeping a close eye on precious metals; particularly gold after prices settled at a record high Tuesday.

Gold for December delivery added $8.20 to settle at $1,259.30 an ounce after reaching $1,261.60 earlier in the day. Its record high settlement price was $1,258.30 an ounce, although it has reached an intraday high of $1,266.50 an ounce. Both occurred in late June.

Some analysts believe gold could rise even higher in the months ahead as investors use the asset as a hedge against riskier bets and as more people buy gold during the fall festival season in India.

Gold isn't the only metal performing well - the Silver ETF as well as Silver Wheaton hit 52-week highs.

What’s the trade?

With gold at current levels, if you want to put money to work in metals I think you get more bang for your buck long copper, says Joe Terranova. I'd play it long Freeport . Elsewhere in the space I'd also look at oil, he says.

I’m looking at the correlation between Freeport and Mastercard , says Steve Cortes. They had been trading in tandem but now they're starting to diverge. I think FCX is doing well because Asia is strong and demand for its products is strong. And I find confirmation in the Mastercard weakness -- higher prices that come from strong demand are no good for a credit card processor.

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TOPPING THE TAPE: FINANCIALS

Regional banks topped the tape on Wednesday after KBW said PNC and US Bancorp may be on the prowl. According to a Bloomberg report potential targets include KeyCorp, SunTrust and Regions Financial .

What’s the trade?

If you believe loan growth will increase, then look at regional banks, says Joe Terranova.

And if you're looking at big banks, I think $130-$135 is support for Goldman , Terranova adds.

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BP SHARES UP AFTER REPORT THAT SPREADS BLAME

BP shares traded higher after the company said a series of mistakes led to the Deepwater Horizon explosion.

In an internal report released Wednesday, BP blames itself, other companies' workers and a complex series of failures for the massive Gulf of Mexico oil spill and the drilling rig explosion that preceded it.

The 193-page report was posted on the company's website.

What’s the trade?

I’m bullish oil broadly, says Peter Schiff of Euro Pacific Capital. I think prices go higher.





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Trader disclosure: On Sept. 8th, 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 (AXP), (APA), (AAPL), (ARUN), (BMO), (C), (FCX), (XBI), (GS), (IBM), (JOYG), (MRVL), (OXY), (ORCL), (POT), (QCOM), (GLD), (RSH), (SU), (UPL), (X); Cortes Owns (FCX), (BHP), (SFD), (BMO), (TD), (OAS); Cortes Is Long British Pound; Cortes Is Long Crude Oil; Cortes Is Short Yen

For Peter Schiff
Schiff And His Firm Own (BP)
Schiff And His Firm Own (XOM)
Schiff And His Firm Own (CVX)
Schiff And His Firm Own (COP)
Schiff And His Firm Own (POT)
Schiff And His Firm Own Gold
Schiff And His Firm Own Silver
Schiff And His Firm Own U.S. Dollar, Euro, Swiss Franc, Yen

For Brian Kelly
Accounts Managed By Kanundrum Cpaital Own (GLD)
Accounts Managed By Kanundrum Cpaital Own (GDXJ)
Accounts Managed By Kanundrum Cpaital Own (SLV)
Accounts Managed By Kanundrum Cpaital Own (VRSN)
Accounts Managed By Kanundrum Cpaital Own (RAX)
Accounts Managed By Kanundrum Cpaital Own (DRIV)
Accounts Managed By Kanundrum Cpaital Own (ANDE)
Accounts Managed By Kanundrum Cpaital Own (TBT)
Accounts Managed By Kanundrum Cpaital Own (POT)
Accounts Managed By Kanundrum Cpaital Are Long U.S. Dollar
Accounts Managed By Kanundrum Cpaital Are Long Swiss Franc
Accounts Managed By Kanundrum Cpaital Are Long Yen
Accounts Managed By Kanundrum Cpaital Are Short (XLF)
Accounts Managed By Kanundrum Cpaital Are Short (IAI)
Accounts Managed By Kanundrum Cpaital Are Short (MCO)
Accounts Managed By Kanundrum Cpaital Are Short (AFL)
Accounts Managed By Kanundrum Cpaital Are Short Pound
Accounts Managed By Kanundrum Cpaital Are Short Australian Dollar
Accounts Managed By Kanundrum Cpaital Are Short Euro

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 (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 (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 (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DLUEY)
Virtus Investment Partners own more than 1% of (DRYS)

For Uche Orji
Orji Or A Member Of His Team Owns (INTC)
(INTC) Is Or In Past 12 Months Has Been a Client Of UBS Securities LLC (Non-Investment Banking Securities-Related Services)
UBS Securities LLC Has Received Compensation From (INTC) In Past 12 Months


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