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Confounded By Stock Market Moves? 8 Pros Reveal How to Trade Q4

I had some dreams they were clouds in my coffee.
- Carly Simon 1972 / - Bulls 2011

By the end of trading on Friday September 30th, stocks put in their worst quarter since the financial crisis of three years ago.

The S&P 500 lost nearly than 13 percent over the past 3 months, with about 6 percent of that decline coming in September.

And it gets gloomier still.

In what some investors fear could be a precursor to the upcoming earnings season, Ingersoll Rand cut its third-quarter and full-year earnings forecast to below market estimates.

Nonetheless, the fourth quarter is historically the best quarter of the year. And we're hearing that money mangers are looking for - well, something.

Where can you possibly find opportunity in a market like this one? Don't fret, the Fast money gang have plenty of ideas!

Q4 Investment Outlook

Pete Najarian

The Fast Money Pit Boss suggests keeping materials stocks on the radar. “They’ve absolutely been taken out,” he says. Najarian is particularly keen on Freeport McMoRan and Walter Energy. “They’re just too cheap,” he says. “I’m slowly starting to nibble.

And as a related trade Najarian also likes the rails. “Somebody’s got to move it all.”

Karen Finerman

With consumers retrenching, Fast Money’s Chairwoman suggests focusing on companies that provide value,” Something like Target,” she says.

And ever the value investor Finerman also suggests looking for stocks that are just ridiculously oversold. In that category she likes Wabco.

Guy Adami

”I’m looking at biotech,” says the Fast Money Negotiator. “Celgene has held up remarkably well. “ He’s not quite ready to pull the trigger but if there’s a washout in the S&P Adami says, “I’d jump in.”

Joe Terranova

”I’m currently getting into Goldman, Morgan Stanley and Wells Fargo ,” says the Fast Money Liquidator. Terranova thinks these stocks are so oversold that positive headlines such as a better than expected jobs number could send them off to the races.

However with higher reward comes higher risk. “By the 3rd week of October, I’ll re-evaluate. By then I should  know whether assuming risk in those names was correct or not.”

Top Trades on the Street

Jon Najarian

The Monster thinks stocks are so oversold that investors won't be able to resist valuations. "I’m a buyer of stocks that people didn’t want on the sheets at all. On Friday I nibbled at Netflix," he says.

Steve Grasso

Fast Money's Governor thinks you should keep it simple and stick with what's working. And in this market that's utilities. "I own Dominion Resources. It’s a shining spot in a nightmare. Or you can look at Southern," he says.

Patty Edwards

Fast's 'Best of the Northwest' trader says to look for yield. "For me its long Kellogg . If corn and wheat come off their highs, it should help margins at this company," she says.

Also Edwards agrees with DocJ that the sell-off presents an opportunity to buy stocks that were oversold. "In that area look at Apache and Walter Energy. I think they could both snap back," she says.

Dan Dicker

A new Fast contributor, oil pro Dan Dicker thinks there's value to be found in the energy sector. "Oil has been making higher lows for the past 3-years," he says. That’s bullish and should create value in oil stocks.

He says look at Baker Hughes. "I never thought I’d see it under $50. Also he likes Schlumberger "The market is pricing that one as if another oil well will never be drilled again," Dicker says.

Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to .

Trader disclosure: On Sep 30, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Dicker is long oil; Dicker is long SLB; Dicker is long APA; Jon Najarian Owns NFLX call spread; Edwards owns APA; Edwards owns XLK; Edwards owns COP; Grasso owns AKS; Grasso owns AMD; Grasso owns ASTM; Grasso owns BA; Grasso owns BAC; Grasso owns C; Grasso owns D; Grasso owns JPM; Grasso owns LIT; Grasso owns LPX; Grasso owns MAR; Grasso owns MHY; Grasso owns NDAQ; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XHB; Grasso owns XLB; Grasso owns XLI

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