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Let the Stock Picking Begin

Upward momentum in the stock market appeared to be dwindling on Monday with the S&P posting a small gain and the Dow closing negative.

But the Fast Money pros have spotted a slew of trading opportunities in this quiet market.

CHIP STOCK TRADES

The desk recommends watching chip stocks after Micron, Texas Instruments and others touched new highs.

What’s the trade?

In the options world, Pete Najarian sees enthusiasm for AMD as well as Micron and MIPS . And he says it makes sense. “Morgan Stanley is talking about 100 million tablets selling in 2012.” In other words if the tablet market is going to explode chip makers should benefit. (In case you're wondering Morgan Stanley believesARM Holdings and SanDisk benefit most from the trend.)

But he adds investors don’t have to pick an individual name. He's also a fan of playing the space broadly with the SMH.

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FAST FLASH: NETFLIX

The desk is watching Netflix, after the stock made new record highs and Caris & Co increased its price target on the company to $316 from $224, saying growing revenues will offset increasing costs of goods.

What’s the trade?

I find this stock terrifying both long a short, says Karen Finerman. It’s a good company but at 83 times earnings it’s hard to feel comfortable long and the short interest is enormous.

I’m not sure about the price target but I do think the analyst has the direction right, says Pete Najarian.

I agree that the stock is overhated, says Steve Cortes. But I prefer a derivative play – long Akamai. They provide the backbone of streaming. If it can get above $42 I’d go long.

I think the gains are nothing but a classic short squeeze, adds Joe Terranova. The top may be close.


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FAST FLASH: APPLE

Apple closed higher Monday amid reports the company is developing a new smaller, cheaper iPhone 'the iPhone Nano.'

What’s the trade?

The thought of Apple looking at a lower price point could make investors nervous, says Tim Seymour. It suggests margins may be coming down.

Yes, it calls margins into question, adds Karen Finerman. But net / net a cheaper iPhone probably means higher sales and the Street should like that.

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UNUSUAL ACTIVITY: EXCHANGES

Lots of unusual activity in the exchange stocks Monday with reports that CME may team with Nasdaq OMX to make a hostile bid for NYSE Euronext.

What’s the trade?

All the Fast Money traders expect to see further consolidation in this space, with Joe Terranova speculating exchanges in Asia may be in play.


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OIL’S REAL PROBLEM: OKLAHOMA

If you watch the action in the price of US crude as a barometer for world oil demand, Dennis Gartman, author of the Gartman Letter, would like a word.

He says watching WTI doesn't give you an accurate picture when Brent is 2/3 of the world’s oil and should be the barometer of world demand.

Get all the details. Watch the video now!






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Trader disclosure: On Feb 14, 2011, 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); Seymour Owns (BAC); Seymour Owns (F); Seymour Owns (FXI); Seymour Owns (GE); Seymour Owns (POT); Seymour Owns (TSO); Seymour Owns (NOK) Call; Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's Firm Is Long S&P Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm Owns (BAC) Leap, Finerman Owns (BAC); Finerman's Firm Owns (BBY); Finerman's Firm And Finerman Own (BP); Finerman Owns (C); Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (IBM); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM); Finerman's Firm Owns (M); Finerman's Firm Owns (MCD); Finerman's Firm And Finerman Own (MSFT); Finerman's Firm Owns (PLCE), (PLCE) Options; Finerman's Firm Owns (TGT); Finerman's Firm Owns (WMT); Finerman's Firm Owns (EBAY); Najarian Owns (BAC) Call Spread; Najarian Owns (C); Najarian Owns (DOW) Calls; Najarian Owns (F) Bonds, Calls; Najarian Owns (GE); Najarian Owns (GM); Najarian Owns (JPM) Call Spread; Najarian Owns (MS); Najarian Owns (PFE); Najarian Owns (YHOO); Najarian Owns (CLF) Call Spread; Terranova Owns (VRTS); Terranova Owns (C); Terranova Owns (PEP); Terranova Owns (UPL); Terranova Owns (GM); Terranova Owns (APA); Terranova Owns (CVI); Terranova Owns (SU); Terranova Owns (CNQ); Pete Najarian owns (MU) calls

Comcast is the parent company of CNBC
Comcast is the parent company of NBCUniversal
GE owns 49% of NBCUniversal
GE owns 49% of CNBC

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (DPUKF)

For Brian Kelly
Accounts Managed by Kanundrum Capital Own (EBAY)
Accounts Managed by Kanundrum Capital Own (ATW)
Accounts Managed by Kanundrum Capital Own (RDC)
Accounts Managed by Kanundrum Capital Own (BALT)
Accounts Managed by Kanundrum Capital Own (DRYS)
Accounts Managed by Kanundrum Capital Own (FRO)
Accounts Managed by Kanundrum Capital Own (IAU)
Accounts Managed by Kanundrum Capital Own (SLV)
Accounts Managed by Kanundrum Capital Own (FCX)
Accounts Managed by Kanundrum Capital Own (MCP)
Accounts Managed by Kanundrum Capital Own (BAC)
Accounts Managed by Kanundrum Capital Own (INTC)
Accounts Managed by Kanundrum Capital Own (AMD)
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 Are Long USD
Accounts Managed by Kanundrum Capital Own (APA)
Accounts Managed by Kanundrum Capital Own (ELX)
Accounts Managed by Kanundrum Capital Own (QLGC)
Accounts Managed by Kanundrum Capital Own (PGH)
Accounts Managed by Kanundrum Capital Own (PWE)
Accounts Managed by Kanundrum Capital Are Short The Yen
Accounts Managed by Kanundrum Capital Are Short the Australian Dollar
Accounts Managed By Kanundrum Capital Own (UAL)

For Todd Gordon
Aspen Trading Group is long USD vs. the Swiss Franc

Tero Kuittinen
Kuittinen has no disclosures

For Colin Gillis
Gillis has no disclosures in (AAPL), (GOOG), or (MSFT)

For Dennis Gartman
Funds Managed By Dennis Gartman are long the Canadian Dollar
Funds Managed By Dennis Gartman are long the Australian Dollar
Funds Managed By Dennis Gartman are long Gold
Funds Managed By Dennis Gartman are long Wheat
Funds Managed By Dennis Gartman are long Corn
Funds Managed By Dennis Gartman are long Soybeans
Funds Managed By Dennis Gartman are long Sugar
Funds Managed By Dennis Gartman are long Crude
Funds Managed By Dennis Gartman are long Nat Gas
Funds Managed By Dennis Gartman are short the Euro
Funds Managed By Dennis Gartman are short the Sterling
Funds Managed By Dennis Gartman are short the Japanese Yen

For Mike Khouw
Cantor Fitzgerald & Co is a market maker in (SPY)



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