On the S&P, Grasso suggests watching 1344 as a key technical level to see if it generates resistance. Grasso’s bias is that it will because he thinks Friday’s gains are little more than a short covering rally. "I spotted the short covering starting on Thursday around 3:15pm ET," he says. “I’m looking for lower highs and I'd sell the market,” he says.
Pete Najarian is more bullish. He thinks "there's plenty of backbone in the rally outside the commodities that should hold the market at these levels."
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HARDEST HIT MATERIALS STOCKS THIS WEEK
On Friday the Fast traders took a long hard look at some of the materials stocks that took the hardest hit this week. They follow:
AK Steel (AKS) -7%
Vulcan Materials (VMC) -7%
Freeport-Mcmoran (FCX) -6%
Newmont Mining (NEM) -5%”
Cliffs Natural (CLF) -4%
Does the sell-off present a buying opportunity?
Of all the stocks listed above Steve Grasso thinks the most attractive name is AK Steel. “I’m seeing guys spinning out of Letter X and into this name,” he says.
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Trader disclosure: On May 6, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (D); Grasso owns (HOV); Grasso owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST); Najarian owns (PFE), (MRK), (TCK), (AAPL), (AKAM), (C), (HPQ), (TEVA), (MS), (RSX), (GE), (MSFT), (YHOO), (VLO); Najarian is long (RIMM) calls; Najarian is long (AVL) calls; Najarian is long (XLF) calls; Najarian is long (PMCS) calls; Najarian is long (XL) calls; Najarian is long (HBC) calls; Najarian is long (EWZ) Calls; Najarian is long (XLI) calls; Najarian is long (FCX) calls
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