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Adami: Silver Goes North of $40 in Only Weeks

Once again investors found themselves confounded by the market. For the second day in a row, the S&P 500 failed to close above 1,333 a key technical level though it did trade above that level intra-day.

1,333 is closely monitored by technicians because it represents a doubling from the low reached in March 2009.

If you watch CNBC’s Fast Money regularly you know that when the market is trading sideways, the pros focus on what’s working and on Tuesday the metals were working.

Gold prices rose to all-time highs while the price of silver jumped to its highest level since 1980.

How should you position now?

Instant Insights with the Fast Money traders

Guy Adami is focused on the move in silver. “I don’t think the move in silver is over by any stretch,” he says. “I'm convinced we see silver go north of $40 in the next few weeks.” He suggests playing it long Silver Wheaton.

Brian Kelly is starting to think about profit points. Although he concedes precious metals could continue higher Kelly reveals he’ll “sell SLV in the mid 40s and the GLD at 150.”

JJ Kinahan reminds the desk that good traders never fade the trend. “I wouldn’t necessarily get in at these levels but I wouldn’t sell either,” he says.

Karen Finerman just can’t get behind the precious metals trade at all, especially gold. “I’d don’t get it,” she says. ”It’s like religion you either believe or you don’t. And in gold, I don’t believe.”

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AMERICAN SUPERCONDUCTOR

The traders were closely watching the action in American Superconductor which slipped as much 42% in extended trade.

According to OptionMonster Jon Najarian, the decline was tethered to reprots that China-based Sinovel Wind Group had refused to accept contracted shipments from American Superconductor.

To make the situation all the more precarious, Sinovel is by far the company's largest client and, according to Reuters, accounts for about 75 percent of the revenue generated by American Superconductor.

If the sharp sell-off has piqued your interest, Karen Finerman says stay away. “It’s not even like trying to catch a falling knife, it’s an avalanche.”

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TOPPING THE TAPE: TECH BUCKING TAPE ON DEALMAKING FEVER

Chip stocks landed in the spotlight on Tuesday after Texas Instruments dropped $6.5 billion or $25/ share for National Semi.

How should you trade the chip stocks now?

Brian Kelly reminds the desk that he’s short the SMH. "But if it breaks above $35.10 I’ll get out," he says.

Joe Terranova is cautious of the entire technology sector over the next few months. "I believe in the tech story," he says, "but in 2011 I think gains come from August into the end of the year." If you want to play the space sooner, he also says, "Take a second look after we hear earnings from the sector later in the month."

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NASDAQ REBALANCE

Also in tech, Nasdaq announced plans to rebalance the Nasdaq 100. Once the rebalancing is effective on May 2, the projected weight of some tech titans will change considerably.

Take a look:

NASDAQ 100 KEY SHIFTS

Current Projected
Apple 20.49% 12.33%
Google 4.2% 5.8%
Intel 1.75% 4.20%
Microsoft 3.4% 8.3%
Oracle 3.3% 6.7%

What’s the trade?

Joe Terranova is cautious of Apple but not because of the rebalance. He says price action has been concerning recently with the stock making a series of lower highs. "I’m holding puts," he reveals.

Brian Kelly thinks the sell-off in Apple will present a buying opportunity at some point, "but for the next 30 days the structural change will generate forced selling," he says.

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TICK BY TICK: BOEING

The traders put Boeing on the radar after the stock sunk, then rebounded just minutes into the close.

What’s the trade?

Brian Kelly tells the desk he’s not in the trade, but if anything he’d want to be short. He says there’s too much uncertainty after recent events involving Southwest.

Guy Adami reminds that desk Boeing has had trouble around $75.




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Trader disclosure: On April 5, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Finerman and Finerman's Firm own (AAPL); Finerman and Finerman's Firm own (CVS); Finerman's Firm owns (HPQ); Finerman and Finerman's Firm own (MSFT); Finerman owns (USO); Finerman's firm owns (IWM); Finerman's firm owns (SPY); Finerman's firm owns (MDY; Kinahan Owns (WAG); Kinahan owns (CSCO); Kinahan owns (F), is short (F) calls; Kinahan owns (MOS), is short (MOS) calls; Kinahan owns (ORCL); Kinahan is short (SPY) through options; Kinahan is long (XLB) puts; Kinahan is short (YHOO) puts; Adami owns (AGU); Adami owns (C ); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Terranova owns (C); Terranova owns (VRTS); Terranova owns (JPM); Terranova owns (UPL); Terranova owns (PBR); Terranova owns (TCK); Terranova owns (BAX); Terranova owns (XOM); Terranova owns (AKAM); Terranova owns (CVI); Terranova owns (CNQ); Terranova is long (NFLX) puts; Terranova is long (POT) puts; Terranova is long (F) puts; Terranova is long (VLO) puts; Terranova is long (CAT) puts

Brian Kelly
Accounts Managed by Kanundrum Capital are long (GLD)
Accounts Managed by Kanundrum Capital are long (MON)
Accounts Managed by Kanundrum Capital are long (SLV)
Accounts Managed by Kanundrum Capital are short (XLF)
Accounts Managed by Kanundrum Capital are long euro
Accounts Managed by Kanundrum Capital are short yen
Accounts Managed by Kanundrum Capital are long gold
Accounts Managed by Kanundrum Capital are long silver
Accounts Managed by Kanundrum Capital are long crude oil
Accounts Managed by Kanundrum Capital are long natural gas
Accounts Managed by Kanundrum Capital are long (EBAY)
Accounts Managed by Kanundrum Capital are long wheat
Accounts Managed by Kanundrum Capital are long (DBA)
Accounts Managed by Kanundrum Capital are short copper
Accounts Managed by Kanundrum Capital are short (XLF)
Accounts Managed by Kanundrum Capital are short (SMH)
Accounts Managed By Kanundrum Capital Own (TSN)

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 (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)
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 DOMINO'S PIZZA UK & IRL PLC
Terranova owned (JNPR) on 3/30/11

For Anthony Scaramucci
SkyBridge Is A Fund Of Funds Manager
Funds Held May Or May Not Own The Recommended Securities

For Brian Stutland
**No disclosures

For Matt Hougan
**No Disclosures

For Bill O'Donnell
**No Disclosures

For Rich Ilczyszyn
**No Disclosures

Comcast Is The Parent Company Of CNBC
Comcast Is The Parent Company Of NBCUniversal
GE Owns 49% Of NBCUniversal
GE Owns 49% Of CNBC



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