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Dow Plunges To End Wild Week

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DOW PLUNGES TO END WILD WEEK:

The headline: Down Ends Week of 100-Point Swings With a Near 300-Point Tumble; Nobody Wants to Get Long Over the Weekend as Credit Worries Send Traders Bailing

The landscape out there looks similar to last Friday, Jeff Macke says. “You just don’t know what’s going to blow up on Monday” so you can’t get long over the weekend.

Jon Najarian thinks the market needs some transparency with regard to this credit crisis in order for it to trader higher. People are just too worried about Bear Stearns, the homebuilders and mortgage lenders.

Doug Kass, founder and president of Seabreeze Management – a man with a history of accuracy in predicting market trends – told the traders over the Fast Line that “strong technical factors [have] combined with a fundamental problem to profoundly depress investor psychology. This is a perilous time for professionals and for individuals.”



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Doug Kass, founder and president of Seabreeze Management – a man with a history of accuracy in predicting market trends – told the traders over the Fast Line that “strong technical factors [have] combined with a fundamental problem to profoundly depress investor psychology. This is a perilous time for professionals and for individuals.”

THE WEEK: FINANCIALS:

The headline: Financials See Worst Decline In 5 Years As Deepening Credit Fears Sweep Market; Standard & Poor’s Cuts Bear Stearns Credit Rating Outlook To Negative; American Home Collapse, Accredited Home Warning Leave Bank Shares Shaken; Morgan Stanley Upgrades Large-Cap Banks To Overweight

Jon wants to see more executives doing what Bear Stearns (BSC) CFO Sam Molinaro did by presiding over a special conference call today to discuss S&P’s downgrade of the bank. “People need to instill some confidence in this market,” he says, and that is what Molinaro tried to do, even though Bear’s stock got hammered after his comments.

Guy Adami says there’s one investment bank he’d actually buy right here -- Morgan Stanley (MS) because of how cheap it has gotten on a valuation basis.

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MS
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But Doug Kass is short “a bunch of financials.” We’re going to get warnings from every major bank about the credit situation in the next two weeks, Kass says.

SPREAD TOO THIN:

The headline: As Credit Market Cracks, Which Deals May Fall Through? Genesco (GCO) Deal May Be In Peril As Risk Arbitrage Spreads Widen

If you’ve got the guts, Karen Finerman says, the trade is Accredited Home Lenders (LEND).

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WISTREE COMCUR
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Jon Najarian thinks the bottom for the financials is coming soon if it isn’t already here.

THE WEEK: TECH HOLDS STRONG:

The headline: Hewlett-Packard, Tech Shares Stand Out In Stormy Market

Jeff Macke has been saying for a while now that the tech stocks are “wildly underowned” and that’s why they are starting to catch fire again. On the flip side, the financials are far too overowned – and part of the reason we’re seeing a resurgence in tech is because a lot of the money that’s streaming out of the financials is going right into tech – sort of the opposite of what happened when the tech bubble burst. “Suddenly, these stocks look reasonably priced,” Jeff says.

And today isn’t a particularly good indicator for the tech names as the S&P took down stocks like Dell (DELL) and Hewlett-Packard (HPQ). Those are two names Jeff wants to own. “As hard as it is to buy, you buy when it feels this bad … relatively speaking, these are where the values are,” he says.

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DELL
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Jon agrees: “tech will help lead us out of this,” he says. He likes Juniper Networks (JNPR) ahead of Cisco’s (CSCO) earnings Tuesday.

TAKE YOUR POSITION CONDOMS & BEER:

The headline: Church & Dwight (CHD), Maker Of Trojan Condoms, and Molson Coors (TAP) To Report Earnings Tuesday

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TAP
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Guy Adami has been bullish on both these names for some time. For TAP, wait until it reports, but it is a “name you should own,” he says.

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Trader disclosure: On Aug 3 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Jon Najarian Owns (JNPR), (AXP), (AAPL), (BZH), (JSDA), (LEND), (NKE), (OATS), (UA), (WFMI), Is Short (HD), (WM); Macke Owns (ATVI); Finerman's Firm and Finerman Own (BAC), (C), (HD), (KALU), Finerman's Firm Owns (COP), (DVA), S&P Puts, Russell Puts; Macke Owned (ATVI) On 8/1/07; Jon Najarian Owned (JNPR), (ZMH) On 7/20/07; Finerman's Firm Owned (KALU) On 7/9/07
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