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Ahead of the Fed

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BEST WEEK SINCE APRIL:

The headline: Dow Average Surges 2.5% This Week for its Best Gain Since April 20

Global growth is what led us here, Pete Najarian said, and this week showed that the story is still intact. Combine that with stellar performances from the financial, energy and defense sectors and you’ve got a “nice week,” he said.

Guy Adami won’t get bullish until the S&P 500 breaks and holds above the crucial 1490 level, he said.

Remember that the U.S. dollar took a beating this week, and that made everything look more expensive than it was, Jeff Macke said.

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S&P 500
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Karen Finerman said the market could have gotten hurt this week for a number of reasons but it didn’t. It is a little scary, she said, but “impressive action” nonetheless.

THE WEEK: LIGHT SWEET SCRUDE:

The headline: Oil Reaches as High as $80.36 on Hurricanes, China’s Growth

Pete Najarian thinks the real story in energy is in coal. China is now an importer of coal, he said, and its demand, as one could assume, is monstrous.

If coal is where the action is, then that could presumably mean the rails will see strength, Jeff Macke said.

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COP
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Karen Finerman said $80 oil is a reflection of growth, which is good for the U.S. economy even if it may mean higher gas prices. She has been recommending ConocoPhillips (COP) as a way to play high oil prices.

THE WEEK: BLUE-CHIP BREAKOUT:

The headline: Blue Chips MCD, GM, PG, KO Jump This Week

The breakout of the multinationals is undeniable, but Guy Adami predicted a pullback in McDonald’s (MCD). Take profits while you can, he said.

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VOW3
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GM
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IBM
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INTC
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KO
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MCD
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PG
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TXN
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And while Mickey-D’s ramped, much of the tech sector ended up being the laggard of the week. The “big boys” like IBM (IBM) and Apple (AAPL) continued higher, but names like Texas Instruments (TXN) and Intel (INTC) can’t seem to move higher, Pete Najarian said.

THE WEEK: BROKEBACK GREENBACK:

The headline: Dollar Falls to Record Low Against Euro and Other Currencies

The most crowded trade is actually in gold, Guy Adami said. A Fed cut is already priced in and he thinks the next $30-$35 in gold prices will be to the downside.

THE WEEK: BROKERS BREAKOUT:

The headline:Lehman Brothers (LEH), Bear Stearns (BSC) Jump More Than 10% This Week Ahead of Earnings

Could it be that the brokers moved higher simply because of an “absence of new disasters?” Karen Finerman asked. She expects high volatility next week. She’s still playing defense with the financials and isn’t ready to get long yet.

Guy Adami recommended owning Goldman Sachs (GS) into its earnings.

Pete Najarian thinks Goldman and Lehman are positioned for a big move. He remains a buyer of the brokers going into their earnings bonanza.

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GS
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Jeff Macke said he could get long Goldman here because it has inched above its level of resistance. He would get out on any close below $185.

THE WEEK: AMAZIN’ AMGEN:

The headline: Amgen, World’s Biggest Biotech, Leads Industry Breakout After FDA Panel Rejects new Restrictions on Anemia Drugs

Amgen (AMGN) had its day, Pete Najarian said. The anemia news is great, but Amgen’s pipeline is still weak. He recommends getting out now while it’s up...

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EME
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...And up it is, roughly 54% since March, Guy Adami noted. He agrees: take profits.

THE WEEK: CHINA JUMPING:

The headline:China ETF (FXI) Surges 6% This Week as Economy Continues to Boom

“At some point this will break,” Guy Adami said. Warren Buffett recently sold some of his stake in Petrochina (PTR) and he’s usually ahead of the curve, Guy said.

BLACKBERRY BLUSHING:

The headline: Wall Street Falling in Love with Research in Motion (RIMM) This Week

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BB
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RIM got its second upgrade in two days. Even with the iPhone, BlackBerry is still king, Pete Najarian said. Guy would buy RIM here.

LONG JOURNEY:

The headline:Genesco (GCO), Owner of Journey’s Mall Store, Drops as Finish Line (FINL) May Lose Funding For Buyout

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FINL
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WISTREE COMCUR
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UBS said it wants to rethink the deal and Karen Finerman thinks a new deal will come – but at a lower price. This was a short, she said, and now it’s time to cover.

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Trader disclosure: On Sept. 14, 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 (INTC), (SWY); Najarian owns (CREE), (GS); Finerman’s Firm Owns S&P 500 Puts, Russell 2000 Puts, (BEAS), (ASD), Is Short (LEAP); Finerman’s Firm and Finerman Own (HD)