“The stock market is up 24% since September 2010 and more than 80% of the companies in the S&P are now above their 200-day moving average," he says. "I’m anticipating some kind of pullback."
Wirtz had thought the crisis in Egypt would be the catalyst to trigger the correction, but it appears that’s probably not the case. However, he still sees two negative catalysts.
”Things will quiet down in the end of February and the quiet period could create vulnerability. (Also), the budget negotiations might take the market down.”
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UNDER THE RADAR WINNER
The traders are watching the action in chemical maker Albemarle , which received an upgrade to overweight from Neutral at JPMorgan.
How should you game this space?
I think valuations are fair in Albermarle, says Guy Adami. However if you’re a trader Cytech usually makes bigger moves.
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AFTER HOURS ACTION: BROADCOM
Shares of Broadcom slipped in extended trade after the company said its revenue would decline in the next quarter.
Looking at the numbers, Broadcom posted a 45 percent increase in fourth-quarter revenue to $1.95 billion from $1.34 billion a year ago, compared with analysts' average expectation for $1.9 billion, according to Thomson Reuters I/B/E/S.
The supplier of chips used in consumer electronics and network equipment, said its profit rose to $266 million, or 47 cents per share, compared with $59 million, or 11 cents per share, in the same quarter a year ago.
What’s the trade?
The stock has had a tremendous run, says Guy Adami. Now I think it trades down to $40.
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Trader disclosure: On Feb 2, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Adami's wife works for (MRK); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman's firm is short (IJR); Finerman's firm is long S&P puts; Finerman's firm is long Russell 2000 puts; Finerman owns (AAPL); Finerman's firm owns (AAPL); Finerman owns (BAC); Finerman's firm owns (BAC) leaps; Finerman's firm owns (BBY); Finerman owns (BP); Finerman's firm owns (BP); Finerman owns (C); Finerman's owns (GOOG); Finerman owns (HPQ); Finerman's firm owns (HPQ); Finerman's firm owns (IBM); Finerman owns (JPM) and (JPM) leaps; Finerman's firm owns (JPM) and (JPM) leaps; Finerman's firm owns (MCD); Finerman owns (MSFT); Finerman's firm owns (MSFT); Finerman's firm owns (TGT); Cortes is long U.S. Treasuries; Cortes owns (TSN); Cortes owns (EXC); Cortes owns (MO); Cortes owns (PM); Cortes owns (GS); Cortes owns (MS); Cortes owns (SVU); Cortes is short (LVS); Cortes is short (BAC); Cortes is long U.S. Treasuries; Cortes owns (TSN); Cortes owns (EXC); Cortes owns (MO); Cortes owns (PM); Cortes owns (GS); Cortes owns (MS); Cortes owns (SVU); Cortes is short (LVS); Cortes is short (BAC)
BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (ATW)
Accounts Managed By Kanundrum Capital Own (BAC)
Accounts Managed By Kanundrum Capital Own (EBAY)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (MS)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (DBA)
Accounts Managed By Kanundrum Capital Own (JJG)
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (ATW)
Accounts Managed By Kanundrum Capital Own (RDC)
Accounts Managed By Kanundrum Capital Own (TLT)
Accounts Managed By Kanundrum Capital Are Short Australian Dollar
Accounts Managed By Kanundrum Capital Are Short The Yen
JOSHUA BROWN
Brown owns (AAPL) for clients
Brown owns (AIG) and for his clients
Brown owns (AMZN) for clients
Brown owns (ARMH) for clients
Brown owns (AXP) for clients
Brown owns (BA) for clients
Brown owns (BAC) for clients
Brown owns (BP) for clients
Brown owns (C) and for his clients
Brown owns (CSCO) for clients
Brown owns (F) for clients
Brown owns (FCX) for clients
Brown owns (GE) and for his clients
Brown owns (GS) for clients
Brown owns (GDXJ) for clients
Brown owns (GLD) for clients
Brown owns (HPQ) for clients
Brown owns (JPM) and for his clients
Brown owns (MSFT) for clients
Brown owns (MS) for clients
Brown owns (QCOM) and for his clients
Brown owns (VZ) for clients
Brown owns (WFC) and for his clients
Brown owns (COW) for clients
RICH ILCZYSZYN
Ilczyszyn Has No Disclosures
KEITH WIRTZ
Wirtz has no disclosures
KEVIN CRISSEY
Within the past 12 months, UBS AG, its affiliates or subsidiaries has received compensation for investment banking services from (UAL)
UBS AG, it's affiliates or subsidiaries expect to receive or intend to seek compensation for investment banking services from (UAL), (LCC) in next three months
(UAL) is an investment banking client of UBS Securities within the past 12 months
UBS AG, its affiliates or subsidiaries own 1% or more of a class of (UAL), (LCC) common equity
UBS Securities LLC is a market maker in (JBLU), (UAL), (LCC)
UBS Securities LLC is acting as an advisor to Continental Airlines on its announced agreement to merge with UAL Corp
ALEXANDRA LEBENTHAL
Lebenthal has no disclosures
RON SHAH
Shah has no disclosures
WILLIE WILLIAMS
Societe Genarale facilitates transactions in tradeable currencies
SCOTT NATIONS
Nations has no disclosures
FAST MONEY 360
Stifel Nicolaus is a market maker in (CVS)
GUY ADAMI FAST FIRE 12/21/2010
Adami had no disclosures in (JEF) on 12/21/2010
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