SECOND-WORST DAY OF YEAR:
The headline: Stocks Close Sharply Lower On Growing Worries About Lending Market. The DJIA Finishes With 311 Point Loss.
Eric Bolling says the market started to turn down when Exxon (XOM) reported earnings. However, Eric reminds the panel the market is only 5% off the all time high in the S&P.
Pete Najarian says volatility is not a one day event. He feels there is apprehension in the marketplace and more volatility will likely come.
Jeff Macke says The Street is looking for the bulls to demonstrate that this is a buying opportunity.
WHAT WENT WRONG: FINANCIALS
The headline: Financial Shares Tumble On Subprime, And Credit Concerns
Pete Najarian recommends buying Goldman Sachs (GS), which in the past he has called best in breed. Also he recommends buying the 195 put and selling the 180 put in October “as an insurance policy.”
Guy Adami thinks some financials are sufficiently beat up. He likes GS, and JP Morgan (JPM). However, recommends avoiding American Express (AXP).
Eric Bolling also likes Goldman – he says this is when you buy a quality name such as GS.
Jeff Macke says buy GS for the next 6 hours as a trader – or the next 6 months as an investor.
WHAT WENT WRONG?: OIL & ENERGY
The headline: Oil Shares Fall On Fears Of Lower Production Capacity
Eric Bolling says Exxon (XOM) reported a decrease in profit for the first time in years. He recommends getting out of energy right now – except for the drillers. Eric explains that if you believe production is going down, then bet on drillers because they have to find more.
Pete Najarian likes integrated oil – and also recommends buying puts as protection.
Guy Adami tells the panel energy stocks are over-owned and he’s a seller.
Jeff Macke agrees – but thinks there will be a buying opportunity at some point in the future.
WHAT WENT WRONG: HOMEBUILDERS
The headline: U.S. Homebuilder Shares Hit Lowest In Nearly 4 Years
Eric Bolling tells the panel not to own a homebuilder until one of them goes bankrupt.
Jeff Macke says the credit crunch might be spreading into this sector, but he’s not terribly worried. He does not feel credit issues are having a strong impact on the broad market – and to suggest that they are, he feels, is a serious overstatement.
WHAT WENT RIGHT: TECH
The headline:Apple (AAPL), Baidu.com (BIDU) MEMC (WFR) Buck The Trend In A Down Market
Pete Najarian says Apple isn’t only about the iPhone. It’s about Mac computers which are selling well. He says in Thursday’s huge down market AAPL traded in the green.
Guy Adami says tech is under-owned and energy is over-owned. He thinks money went out of energy and into tech Thursday. Guy likes NVIDIA (NVDA) as a trade.
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Trader disclosure: On July 26th 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Bolling Owns (BP); (XOM)