No. 2 - Get Drugs (Best Bet For A Bad Tape)

Another pocket of relative tranquility that seems to be immunized from the financial distress is Big Pharma, which is currently outperforming the market. Pharma names have traditionally been safe havens in a declining market and this time is no different.

Pete Najarian cautions that drug stocks are faring well but are not bulletproof. He likes names like Wyeth (WYE), GlaxoSmithKline (GSK) and Eli Lilly (LLY). Biotech stocks are also faring well, Pete says. He recommends Myriad Genetics (MYGN) or Amylin Pharmaceuticals (AMLN) if you want to see some drug-related strength without getting exposed to Big Pharma.

Guy Adami thinks GSK is a “pretty easy trade” now that the company made it clear that Avandia was not its one-trick pony. “Own Glaxo here; stop out on a close below $50,” he recommends.

Guy Adami thinks GSK is a “pretty easy trade” now that the company made it clear that Avandia was not its one-trick pony. “Own Glaxo here; stop out on a close below $50,” he recommends.

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Trader disclosure: On Aug 9 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Macke Owns (JWN), (INTC); Najarian Owns (GS), (AMSC); Bolling Owns (T), (BP), Gold, Silver; Bolling Owns Japanese Yen Futures, Gartman Is Short (BAC), Gartman Is Short (GS)