No.1 - Bull Market Is Back

The DJIAjumped 30 points today setting a new record; that surpasses the record close set in February, before housing worries sent this market reeling. Meanwhile, the S&P 500climbed to its highest level since September 2000 and looks poised to make a record of its own. Is the bull market back?

OptionMonster Pete Najarian fills in for Tim Strazzini.

Stacey Gilbert, Chief Options Strategist For Susquehanna Financial Group also joins the guys for the conversation.

Dylan Ratigan says bank stocks led today’s blue chip rally, after JP Morgan (JPM) released blockbuster earnings and told Wall Street investors that revenue from arranging mergers offset the subprime woes. However only the financial sector climbed leading Dylan to his first question – is this a suspect rally?

Pete Najarian says many investors wonder if the market is over-hearted, but he thinks the market is just starting to heat up. He says the Financial Select Sector SPDR (XLF) is just starting to move back to fair value. He can’t understand why the bears are saying this is not a market they want to own.

Stacey Gilbert is a bear. She says in the XLF, the "puts" far outnumber the "calls" and in many of the financial sector stocks such as Goldman Sachs (GS) and Countrywide Financial (CFC) she’s seeing protective “put” buying.

Dylan reminds viewers that Guy Adami predicted this rally weeks ago, and he asks Guy for his best trade. Guy says investors should own banks and his favorites are Bank of America (BAC) and US Bancorp (USB).

Eric Bolling says Stacey and Pete are arguing about financials getting back to even. Instead, he says, investors should note that miners are up 26%, steel is up 19%, utilities are up 9% and energy is up 4%. Stay with the things that are working, insists Eric.

Jeff Macke recommends getting long multi-nationals such as Intel (INTC), Coca-Cola (KO) , Exxon (XOM), Citigropup ( C), and McDonald’s (MCD) based on weakness in the dollar.

He also recommends getting long some of the tech laggards including Advanced Micro Devices (AMD), and Motorola (MOT).

Stacey disagrees. She says the stock price of many technology names such as Electronic Data Systems (EDS) are up because of LBO speculation.

Dylan Ratigan explains in Stacey’s scenario the stock price is artificially high as compared to the value of the company.

Questions? Comments?

Trader disclosure:
On APR 18, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Najarian Owns (AXP), (AAPL), (BAC), (BMY), (C), (CSX),(ENER), (XLF);(JPM), (NOK), (LUV); Bolling Owns (XOM)< (NMX), (ICE), (MPEL), (NMX) Gold, Silver, Natural Gas, Corn; Bolling Is Short Soybeans
Stacey Briere Gilbert is Chief Options Strategist/Head of Market Intelligence Research for Susquehanna Financial Group, LLLP. Ms. Gilbert does not cover individual securities, but does recommend trading strategies. An affiliate of Susquehanna Financial Group, LLLP is the NYSE Specialist in XLF.