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Pros: 3 Thrilling Movers In A Quiet Market

On the surface you might think Thursday was a quite day in the markets.

The S&P barely settled higher and the Dow closed in negative territory as investors moved to the sidelines ahead of next week's elections and Fed meeting.

But if peel back the layers you'll find that the session was chock full of some thrilling moves – rich with profit potential.

What must you know and how should you position?

#1 HALLIBURTON

Shares of Halliburton cratered as much as 17% after a report from the President's oil spill commission suggested the company knew cement used to seal the bottom of the Macando well wasn't stable, but went ahead anyway.

It's the first finding from the commission looking into the causes of the April 20 explosion that killed 11 workers and led to the largest offshore oil spill in U.S. history. And it appears to conflict with statements made by Halliburton, which has said its tests showed the cement mix was stable. The company instead has said BP's well design and operations are responsible for the disaster.

As you can see from the chart, the stock recovered some of that loss towards the end of the day.

What’s the trade?

I don’t think it’s as big a deal as the move in the share price would indicate, says Guy Adami. I believe BP indemnified these guys.

But more hearings are scheduled for November 8th and 9th about the oil spill, reminds Joe Terranova. HAL has headline risk. I’d cycle into a rival such as Schlumberger that has less headline risk.

#2 SEAGATE

Seagate shares plummeted as much as 13% after a report on “Bright Side of News” said the company's talks with TPG and KKR fell apart “and the supposed privatization of Seagate went down the drain."

What’s the trade?

They’re underlying business isn’t great, says Guy Adami. We told you last week to take profits and now you can see why.

#3 RARE EARTHS

Both Moly Corp and Rare Element Resource tanked Friday after the New Tork Times reported China would lift its export ban on the precious materials.

“After blocking shipments of raw rare earth minerals to Japan since Sept. 21, and to the United States and Europe since Oct. 18, Chinese customs officials, without explanation, allowed shipments to resume to all three destinations, said industry officials who insisted on anonymity because of the diplomatic sensitivity of the issue,” the paper writes.

What’s the trade?

The rare earth trade is all about China, reminds Tim Seymour. They set the floor and they set the ceiling. China controls over 90% of the total rare earth minerals.

The new rare earths / strategic metals ETF scares me, adds Joe Terranova. If you’re trading the rare earth ETF, you’re trading the thought process of what the Chinese are going to do.

(Read more about the rare earths / strategic metals ETF. Click here to go to "New Way To Play Rare Earth")

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FAST FLASH: GOLDMAN SACHS BREAKS OUT ABOVE $160

On Thursday the traders were keeping a close eye on market bellwether Goldman Sachs.

For the first time since April the stock broke above $160, a key technical level and area of extremely strong resistance.

What should you make of the move?

Goldman appears to be breaking out, says Guy Adami, but I’m hard pressed to understand why.

I suspect it has to due with the put-back mortgage issue – which Goldman doesn’t have, says Joe Terranova. Also I think the Street expects their crackerjack commodities desk will be all over the sharp moves in commodities.

In the space I’m watching Banco Santander, says Tim Seymour. I’d think about establishing a position.

Elsewhere in financials, I had said I wanted to short BofA at $12, reminds Steve Cortes. It only went up to $11.70 and then sold-off and now I think I’ve missed the opportunity to short.







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Trader disclosure: On Oct. 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; Seymour owns (AAPL), (BAC), (STD), (PBR), (POT); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova owns (APA), (AAPL), (AXP), (C), (GOOG), (GS), (ISRG), (JPM), (ORCL), (PCP), (PEP), (PFE), (UPL), (VRTS), (XBI); Cortes owns (K); Cortes owns (TSN); Cortes is short crude oil; Cortes is short gold; Cortes is short (AAPL); Cortes is short (RSX); Cortes owns the S&P 500

For Gary Kaminsky
***No Disclosures**

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 (DRYS)

For David Maris
***No Disclosures**

For Benjamin Salisbury
FBR has managed a (MEE) public offering and received compensation for investment banking services from the company in the past 12 months.
FBR makes a market in (MEE)
A member of Salisbury’s team owns shares of (RIG)
FBR makes a market in (RIG)
FBR makes a market in (URS)
FBR makes a market in (ROSE)
FBR makes a market in (PCX)

For Brian Stutland
Stutland Equities is long (TLT), short calls
Stutland Equities is long U.S. Treasuries


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