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Traders: Despite Selling, Bulls Ended Week Ahead

Are the bulls about to roll over? You'd sure think so from the chatter on Wall Street.

By the end of the Friday's session, the S&P was sharply lower as fears of Mideast turmoil sent investors running for the exits.

Negative momentum prevailed, despite new economic data, which showed unemployment fell below 9 percent for the first time in nearly two years and the economy added 192,000 jobs in February.

Instead, investors were more focussed on overseas unrest with forces loyal to Libya’s Muammar Gaddafi increasing their attacks on rebel held areas.

Sure sounds bearish.

But an important item may have been overlooked amid all the Mideast headlines. It was the bulls who ended the week on top.

For the week, the Dow rose 0.3 percent and the S&P and the Nasdaq both gained 0.1 percent. It's a modest gain, but a win's a win.

How should you position now?

Instant Insights with the Fast Money traders

Fast trader Brian Kelly is bearish. He thinks the surge in crude may trigger the sharp correction that so many investors have feared. He’s watching the spike in gasoline futures which he takes as a sign that “prices at the pump will hit $4 in about 2-months.” And he says that kind of surge is like a tax.

To support his thesis he says if oil were not such a strong market influence “the S&P would have been up 20-handles" on the positive economic news, especially the jobs number.”

Pete Najarian is cautious but not bearish. He reminds the desk that oil has only spiked above $100 for a few days. Whether the price increases sustain is most important to Najarian. “If it sustains, then we’re looking at trouble.”

Karen Finerman shares Najarian’s outlook. Although she’s concerned about the speed and the acceleration in the price of oil she also says, “I wouldn’t trade my portfolio around the events in Libya.”

Zach Karabell has been a long-term bull and shows little signs of changing his stance. “If oil were to spike from $100 to $130 and prices at the pump shoot up $1 a gallon, then he’d expect a serious retrenchment. But short of that he remains bullish. And he adds that “fundamentals remain quite strong” and at the end of the day, he thinks that drives the market. "The thesis of rising tide, corporate earnings; none of it has changed," he says.

Deutsche economist and CNBC contributor Joe LaVorgna shares Karabell's outlook.

Although $100 oil may have a psychological impact LaVorgna doesn't think oil presents a major drag on the economy unless it rises another $40-$50. "It's going to take a lot bigger move in oil with persistent duration to really derail this expansion," he says. "If I had to give you a range of where to worry, it's closer to the '08 highs of $147," he says.

What do you think? We want to know!

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CALL OF THE DAY: BANKS

Financials were among the worst performing sectors on Friday after Bank Of America Merrill Lynch downgraded both Citi and Goldman Sachs.

BoA's Guy Moszkowski said the big concern is cash flow, especially as regulations take effect and customer risk appetite falls.

Is the sell-off a buying opportunity?

Karen Finerman is a buyer of JPMorgan as a best in breed name. "The improvement in the economy should generate more loans and that’s the most profitable part of their business," she says.

Pete Najarian feels much the same. On the pullback he's a buyer not only of JPMorgan but also Morgan Stanley. "I’d go long as a bet on dividends and increased M&A," he says.

Brian Kelly is on the other side of the trade. "I’m short the XLF and IXG," he says. "The yield curve has driven the financials, but in Europe it’s getting flatter. I think the same thing happens here."


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STELLAR SILVER

The Fast traders are keeping a close eye on silver, which settled at its highest levels since March 5, 1980 and up for its 6th consecutive week.

What’s the trade?

Joe Terranova says if you're looking to play metals he likes silver over gold.

Pete Najarian is also bullish and would play it long the SLV. A volume of buyers of the "April 35 calls and April 40 calls suggests people are looking for more," he says.


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MARKET MYSTERY: DOLLAR BREAKDOWN


The traders are watching the action in the dollar after the greenback closed lower again on Friday. Why is the dollar losing its safe haven status in the currency markets?

Get the latest insights from Willie Williams of Societe Generale.

Watch the video now!




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Trader disclosure: On March 4, 2011, 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 (VRTS); Terranova owns (C); Terranova owns (UPL); Terranova owns (ABT); Terranova owns (MS); Terranova owns (PBR); Terranova owns (BAX); Terranova owns (TEVA); Terranova owns (CVI); Terranova owns (RSX); Terranova owns (SU); Terranova owns (CNQ);Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's Firm is short (XRT); Finerman's Firm is short (IJR); 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 (GM) leaps; 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 And Finerman Own (MSFT); Finerman's Firm Owns (WMT); Pete Najarian owns (CNI); Pete Najarian owns (DOW); Pete Najarian owns (MO) calls; Pete Najarian owns (SA) ; Pete Najarian owns (TCK); Pete Najarian owns (BAC) calls; Pete Najarian owns (C); Pete Najarian owns (F) bonds; Pete Najarian owns (GE) ; Pete Najarian owns (JPM) calls; Pete Najarian owns (MS); Pete Najarian owns (STJ) calls; Karabell owns (GE); Karabell owns (AAPL); Karabell owns (FXI); Karabell owns (IBM); Karabell owns (GOOG)

For Joe Terranova
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 (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 (NCRI)
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)
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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 (DOM)

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (IAU)
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 Are Long Wheat
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Accounts Managed By Kanundrum Capital Are Long Corn
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Are Long The Euro
Accounts Managed By Kanundrum Capital Are Long Gold
Accounts Managed By Kanundrum Capital Are Long Crude
Accounts Managed By Kanundrum Capital Are Long Silver
Accounts Managed By Kanundrum Capital Are Short the S&P 500
Accounts Managed By Kanundrum Capital Are Short the U.S. Dollar
Accounts Managed By Kanundrum Capital Are Short (IXG)
Accounts Managed By Kanundrum Capital Are Short (XLF)
Accounts Managed By Kanundrum Capital Are Short The Yen
Accounts Managed By Kanundrum Capital Own (PGH)

For Zachary Karabell
River Twice Capital owns (QCOM)
River Twice Capital is short (SPY)
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River Twice Capital is short (CCL)
River Twice Capital is short (S)
Karabell and River Twice Capital own (POT)
Karabell and River Twice Capital own (BRCM)
Karabell and River Twice Capital own (CSCO)
Karabell and River Twice Capital own (GS)

For Willie Williams
Societe Genarale Facilitates Transactions In Tradable Currencies

For Anthony Scaramucci
SkyBridge Capital is a fund of funds manager. Funds held may or may not own the recommended securities.

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