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Pros: 5 Buying Opportunities Amid the Carnage

Thursday, 4 Aug 2011 | 1:23 PM ET

Stocks accelerated their sell-off across the board in another volatile session Thursday as fears over a global economic slowdown intensified and ahead of the widely-followed monthly unemployment report.

Everyone focused on the carnage, but the “Fast” traders said there may be some pockets of opportunities to make money.

So where are the valuations so low that it may make sense to buy in this volatile market?

Steve Cortes likes consumer staples like Kraft Foods because he thinks the price of commodities are going to come down and that benefits food companies such as this one.

He also is intrigued by Bank of America , which he anticipates buying in the next several days. While it’s a name he once trashed, he thinks the valuation is getting very attractive.

“It is not exposed as many banks are to Europe,” he said. “It’s a domestic play.”

Steve Grasso has his eye on Abercrombie & Fitch, but as a technical trade.

If you look at the trading range it tops out near $80, with $70 typically being an attractive entry point, he said.

He also likes Dominion Resources, which yields over 4 percent, as a utility play.

Guy Adami also likes Abercrombie, as well as Tiffany & Co .

“When you see an Abercrombie unchanged or slightly higher on a day like today, I think it is trying to tell you something,” he said.

Brian Kelly is looking at the 2-year US Treasury, which could potentially catch a bid in light of the fact that Bank of New York Melon will now charge customersto hold cash in its bank.

"Why wouldn’t you just put your money in treasury?” he asked.

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KRAFT TO SPLIT IN TWO

There was some good news in Thursday’s sell-off. Kraft Foods was up after reporting it would break into two publicly traded companies. It also beat profit estimates in the second quarter and raised guidance.

Jeffries’ analyst Scott Mushkin told the “Fast” traders he thought it was a “great deal all around.” So what does it mean moving forward?

To see the full interview, watch the video now!

Currency Wars & Kraft Splits in Two
Insight on the currency wars and how to play it, with Rebecca Patterson, JP Morgan, and CNBC's Kayla Tausche has the story on Kraft's plans to split into two companies and what it means to investors, with Scott Mushkin, Jefferies & Company.

*To see the interview, go about 5 mintues in.


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Trader disclosure: On Aug 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; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Cortes owns (WMT); Cortes owns (PM); Cortes owns (KFT); Cortes is short (LULU); Cortes is short (AAPL); Cortes is short (LVS); Cortes is short Silver; Cortes is short EUR; Steve Grasso owns (AMD); Steve Grasso owns (ASTM): Steve Grasso owns (BA); Steve Grasso owns (BAC); Steve Grasso owns (C); Steve Grasso owns (D); Steve Grasso owns (JPM); Steve Grasso owns (LIT); Steve Grasso owns (LPX); Steve Grasso owns (LVS); Steve Grasso owns (MAR); Steve Grasso owns (MHY); Steve Grasso owns (NDAQ); Steve Grasso owns (PFE); Steve Grasso owns (PRST); Steve Grasso owns (UAL); Steve Grasso owns (XHB); Steve Grasso owns (XLB); Steve Grasso owns (XLI)

For Brian Kelly
Accounts Managed By Brian Kelly Capital Own (TLT) calls
Accounts Managed By Brian Kelly Capital Own (GLD) calls
Accounts Managed By Brian Kelly Capital Own (SLV) calls
Accounts Managed By Brian Kelly Capital Own (VIX) calls
Accounts Managed By Brian Kelly Capital Own (SDS)
Accounts Managed By Brian Kelly Capital are short (UGA)
Accounts Managed By Brian Kelly Capital are short (JJC)
Accounts Managed By Brian Kelly Capital are short the Euro
Accounts Managed By Brian Kelly Capital are short the Swiss Franc

For Steve Grasso
Stuart Frankel & Co and its partners own (AAPL)
Stuart Frankel & Co and its partners own (CSCO)
Stuart Frankel & Co and its partners own (CUBA)
Stuart Frankel & Co and its partners own (GERN)
Stuart Frankel & Co and its partners own (HPQ)
Stuart Frankel & Co and its partners own (HSPO)
Stuart Frankel & Co and its partners own (MET)
Stuart Frankel & Co and its partners own (MU)
Stuart Frankel & Co and its partners own (NYX)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners own (UAL)
Stuart Frankel & Co and its partners own (XRX)
Stuart Frankel & Co and its partners are short (QQQQ)

Rebecca Patterson
**No disclosures

CNBC.com with wires.

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ANF
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BAC
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D
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MDLZ
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TIF
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