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Traders Confused

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TRADERS CONFUSED

The headline: Dow Rises, But S&P 500 Falls as Traders Weigh The Fed's Moves Last Week

Dylan Ratigan reports that news broke late Monday that Senator Christopher Dodd will meet with Fed Chairman Ben Bernanke and Treasury Secretary Hank Paulson Tuesday in a closed door meeting to discuss financials. On the news, The Dow moved higher.

Jeff Macke explains that the meeting suggests to The Street that government intervention can hold up the tape, at least for a while.

Symbol
Price
 
Change
%Change
S&P 500
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DON'T BANK ON THEM YET

The headline: JPMorgan (JPM), Bank Stocks Showing Weakness After Solid Performance Last Week

Jeff Macke tells the panel that the financial sector gives him pause.

Guy Adami likes Berkshire Hathaway (BRK) in this tape. Also, Guy recommends buying what Warren Buffett is buying; names such as Bank of America (BAC),US Bancorp (USB) and Johnson & Johnson (JNJ).

Pete Najarian tells the panel to be careful of the financials. He doesn’t think they’ve reached a bottom. He also recommends keeping an eye on rail stocks. He says Union Pacific (UNP), Burlington Northern (BNI) and other names were all running Monday.

Symbol
Price
 
Change
%Change
NOVU
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JNJ
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UNP
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USB
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CHIP, CHIP HURRAY

The headline: Tech names uniquely strong in this tape.

Stacey Briere Gilbert says traders like tech stocks and many see them as a safe haven until they can figure out what’s going on with the market.

AFTER HOURS ACTION: NOT IN WALLET ANYMORE

The headline: Capital One (COF) Plummets After Hours On Plans To Close Alt-A Mortgage Unit;

Dylan Ratigan explains that “Alt-A mortgages” are essentially loans to borrowers who don't fully document their income or assets.

Stacey Briere Gilbert says this is not just a Capital One problem. The unknowns are a broader issue, she says.

Symbol
Price
 
Change
%Change
COF
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LOWE AND BEHOLD

The headline:Lowe's (LOW) Shocks Housing-Wary Street With Stronger-Than-Expected Earnings;

Jeff Macke doesn’t feel that results from LOW were particularly strong; he feels they just weren’t as bad as results from Home Depot (HD) and that was good for a bounce.

Symbol
Price
 
Change
%Change
HD
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LOW
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HOT COMMODITY STOCKS

The headline: Freeport-McMoRan (FCX), Commodity Stocks Bounce Back From Last Week's Rout

Guy Adami says the copper story isn’t over. He recommends owning this stock on the correction.

Stacey Briere Gilbert completely agrees.

Symbol
Price
 
Change
%Change
FCX
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FLUOR FLOORS IT

The headline: Fluor (FLR) Jumping On Report It May Win $2B Kuwaiti Refinery Contract;

Guy Adami explains that Fluor won a nuclear reactor contract and he recommends owning FLR on the current dip.

Symbol
Price
 
Change
%Change
FLR
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TAKE YOUR POSITION: MEDTRONIC

The headline:Medtronic (MDT) To Report Earnings Tomorrow After The Bell

Pete Najarian says medical device units have been strong. He expects MDT to have a good report.

Symbol
Price
 
Change
%Change
MDT
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TAKE YOUR POSITION: GAMESTOP

The headline:
GameStop (GME) To Report Earnings Thursday Before The Bell

Stacey Briere Gilbert says guidance will be the key information from GME. She recommends selling the Sept. 45 calls. Otherwise, she says wait until the stock pulls back a little before buying.

Symbol
Price
 
Change
%Change
GME
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TAKE YOUR POSITION: PETROCHINA

The headline: PetroChina (PTR), China's Largest Energy Firm, Reports Earnings Wednesday

Guy Adami says he likes this stock and sees room on the upside. He recommends owning it as a trade.

Symbol
Price
 
Change
%Change
1857
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OPTIONS ACTION:

The headline: Gilbert Seeing Unusual Call Option Patterns In Goldman Sachs (GS),MasterCard (MA)

Stacey Briere Gilbert explains that she’s started to see traders buying “in the money” calls and selling twice as many “out of the money” calls. She says the trade provides upside exposure without the downside risk.

Symbol
Price
 
Change
%Change
GS
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MA
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THE BOURSE ULTIMATUM:

The headline: NASDAQ To Sell Entire London Stock Exchange (LSE) Stake As It Pursues Bid For Swedish Exchange OMX; Borse Dubai Announced Higher Offer Friday For OMX

Pete Najarian thinks the NASDAQ will use the money from its LSE stakes to buy back stock.

Jeff Macke adds that in this volatile market the exchanges win in the near term, however he adds in a bear market volume will dry up.

Symbol
Price
 
Change
%Change
NDAQ
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Trader disclosure: On Aug 20 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 (DIS), (JWN); Najarian Owns (ATML); Najarian Is Short (GS) Najarian Owns S&P Puts; Stacey Briere Gilbert Is Chief Options Strategist For Susquehanna Financial Group, LLLP; Gilbert Is Head Of Market Intelligence Research For Susquehanna Financial Group, LLLP; Gilbert Does Not Cover Individual Securities But Does Recommend Trading Strategies
Susquehanna Financial Group Is A Market Maker In (ATML), (BIDU), (CROX), (DNDN) (FSLR), (FXI) (GYMB), (GRMN), (GOOG), (INTC), (JKHY), (LEND), (MSFT), (NDAQ), (PSUN), (PALM), (Rost, (RIMM), (SPLS), (SSCC), (TRMB), (YHOO), (ZUMZ), (QQQQ); Susquehanna Financial Group And/Or Its Affiliates Together Own More Than 1% Of The Shares Of (BSC), (BIDU),(CROX), (CME), (DNDN), (LEND), (NMX),(PALM), (RIMM), (MA), (FCX); Susquehanna Financial Group Has Provided Advisory Services To (AEO); Susquehanna Financial Group Has Provided Advisory Services To (GYMB)