Fast Money

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Fast Money

No. 1 - Trade Like The Pros

Market volatility Thursday reached its highest levels since October 2002. What are you supposed to do when all fundamentals and trends get thrown out the window?

Trade Like the Pros

Pete Najarian tells the panel he used the volatility in Countrywide Financial (CFC) Thursday to his advantage. He got long and short CFC throughout the day, sometimes in minutes-long intervals. He based his trades on gut feelings and the huge swings in the stock throughout the trading session.

In another contrarian move, Pete is now a buyer of Thornburg Mortgage (TMA) on the dip. After doing some research, Pete is confident that Thornburg doesn’t have the same types of inherent problems that Countrywide does. It’s the “Cadillac of mortgages,” he says, and when he saw insiders buying the stock back he thought that was a good sign that they think the worst is over.

Guy Adami’s advice is to stay with what’s working. Why leave a stock like Hewlett-Packard (HPQ) even when the market’s choppy? He also remains a buyer of Biogen (BIIB) which has continued to perform well despite the market volatility and two downgrades. 

Jeff Macke is still cautious of this market and thinks everyone is oversold. It’s not a time to take huge chances, he says, which is why the best move is to sell into rallies.

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Trader disclosure: On Aug 16 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money; Macke Owns (INTC); (JWN); Najarian Owns (TMA); Najarian Is Short (GS); Najarian Owns (AA) Calls; Najarian Owns Straddles In (ETFC); Bolling Owns Gold; Bolling Is Short (FXI) And Owns (FXI) Put,; Bolling Has Closed Out Of His Long Japanese Yen Futures Trade