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Halftime: Stealth Apple Winner?

Apple hit fresh all time highs in anticipation of Verizon’s iPhone announcement on Tuesday. Verizon also traded to the upside.

However, if you’re looking for a tech trade, Nomura analyst Romit Shah thinks an under the radar name is a better place to put money to work.

”We think AMD could be one of the best performing chip stocks in the sector in 2011,” Shah tells us with 36% upside from Friday's close.

In fact, Shah upgraded AMD to ‘Buy’ from ‘Neutral’ with a $12 price target, because his channel checks indicate that some of AMD’s processors used in ultra-thin notebooks are picking up design winds.

”They’ve announced two highly competitiave micro-processors targeting the low-end of the notebook market,” he says. “They’re comparable to Intel in terms of battery life but the graphics performance is quite superior. I think what you’ll see in 2011 is that AMD gains traction with these products.”

And although nothing's been announced Shah thinks AMD chips could get the attention of Steve Jobs and company.

"We could see Apple incorporate some of AMD’s next generation microprocessors into their suite of Macbooks in the coming year," he says. "This would be pretty significant because Apple has never used AMD’s microprocessor chips."

Apparently Shah isn't the only one who sees upside for AMD.

Pete Najarian is also seeing some bullish sentiment in the options market. Najarian says February 9 calls have been very active lately.

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IS M&A FLURRY BULLISH SIGNAL?

With all that went down on Monday, the only thing missing on Wall Street was Monty Hall.

Much like the game show “Let’s Make a Deal,” it appears Corporate America is in the mood to wheel and deal in an effort to profit.

Take a look at what's swirling around out there:

SectorAcquirerTarget
UtilitiesDuke EnergyProgress Energy
ChemicalsDupont Danisco
Medical DevicesJ&JSmith & Nephew
Staples P/E FirmsSara Lee
BiotechSanofi-AventisGenzyme
PornHefner/Icon AcquisitionPlayboy


Nonetheless, stocks traded lower for a third straight session; the S&P hasn’t put in a 3-day losing streak since November?

Isn’t the deal making a bullish sign?

Brian Kelly doesn’t recommend extrapolating the M&A to the broad market. “I don’t think there’s a read through,” he says. “Yes, in general, it’s a sign that people feel more confident in the recovery and that’s bullish – but other than that I don’t see a read through.“

According to Steve Grasso, the action in the S&P is probably more of a bullish market tell. He says, “The 1257 - 1260 is key. We’ve touched those levels twice before and bounced higher.”

Grasso thinks if it happens 3 times it could generate strong bullish sentiment with upside as high as 1280. However, “if it breaks we could be going to 1245.”


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Trader disclosure: On Jan. 10, 2011, 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 (C). Pete Najarian owns (MS). Pete Najarian owns (V) call spread. Pete Najarian owns (YHOO). Pete Najarian owns (CNI). Pete Najarian owns (BBY) calls. Pete Najarian owns (AXP) call spreads. Pete Najarian owns (F) bonds. Pete Najarian owns (F) calls. Pete Najarian owns (GM) call spreads. Pete Najarian owns (MSFT) call spreads. Pete Najarian owns (RIMM) call spreads. Pete Najarian owns (BAC) call spreads. Pete Najarian owns (DD) calls. Steve Grasso owns (ASTM). Steve Grasso owns (BA). Steve Grasso owns (BAC). Steve Grasso owns (BWC). Steve Grasso owns (C). Steve Grasso owns (CSCO). Steve Grasso owns (JPM). Steve Grasso owns (LIT). Steve Grasso owns (LPX). Steve Grasso owns (MHY). Steve Grasso owns (NDAQ). Steve Grasso owns (PFE). Steve Grasso owns (PRST). Steve Grasso owns (S). Zachary Karabell owns (GOOG). Zachary Karabell owns (AAPL). Zachary Karabell owns (FCX). Zachary Karabell owns (RIMM). Zachary Karabell owns (GS). Zachary Karabell owns (C).

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BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Own (YGE)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (ANDE)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (JPM) puts
Accounts Managed By Kanundrum Capital Are Long USD
Accounts Managed By Kanundrum Capital Are Short The Euro
Accounts Managed By Kanundrum Capital Are Short The Yen
Accounts Managed By Kanundrum Capital Are Short (XLF)

STEVE GRASSO
Stuart Frankel & Co and its partners own (AAPL)
Stuart Frankel & Co and its partners own (AMGN)
Stuart Frankel & Co and its partners own (BP)
Stuart Frankel & Co and its partners own (CUBA)
Stuart Frankel & Co and its partners own (GE)
Stuart Frankel & Co and its partners own (GERN)
Stuart Frankel & Co and its partners own (HPQ)
Stuart Frankel & Co and its partners own (HSPO)
Stuart Frankel & Co and its partners own (NWS.A)
Stuart Frankel & Co and its partners own (NY)
Stuart Frankel & Co and its partners own (OPE)
Stuart Frankel & Co and its partners own (PDE)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
Stuart Frankel & Co and its partners own (RDC)
Stuart Frankel & Co and its partners own(TLM)
Stuart Frankel & Co and its partners own (XRX)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners own (UNM)
Stuart Frankel & Co and its partners are short (QQQQ)
Stuart Frankel & Co and its partners are short (AAPL)

ZACHARY KARABELL
River Twice Capital Owns (CSCO)
River Twice Capital Owns (MSFT)
River Twice Capital Owns (DD)
River Twice Capital Owns (GS)
River Twice Capital Is Short (SPY)
River Twice Capital Is Short (XLI)
River Twice Capital Is Short (XLF)

DENNIS GARTMAN
Funds Managed By Dennis Gartman Are Short The Euro

ROMIT SHAH
Nomura Securities International Inc. is a market maker in (AMD)




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