Reversal Of Fortune

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REVERSAL OF FORTUNE:

The headline: Market Mysteriously Rolls Over After Earlier Soaring To Record Highs.

Tech stocks suddenly turned negative and dragged the NASDAQ down more than 1% explains Dylan Ratigan.

Some traders blame JPMorgan for Thursday’s market reversal because they cut Baidu.com (BIDU) estimates says Pete Najarian.

Guy Adami recommends taking profits on both EMC Corp. (EMC) and its spinoff VMWare (VMW). He feels investors can buy them back cheaper.

Symbol
Price
 
Change
%Change
S&P 500
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BIDU
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EMC
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VMW
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TECHNOLOGICAL REVERSAL:

The headline: Google (GOOG), VMware (WMW), Tech Stocks Slide After Midday Reversal Erases Strong Morning Gains.

Jeff Macke feels these stocks had huge runs and he’s not surprised by Thursday’s selling. Also, he feels Thursday’s close was ugly.

Karen Finerman agrees and adds, there could be a lot more reversal ahead of us.

Symbol
Price
 
Change
%Change
GOOGL
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VMW
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SAVE MONEY. TRADE BETTER:

The headline: Wal-Mart (WMT) Boosts Forecast On Better Cost Controls, Sending Shares Jumping.

Jeff Macke explains that sales “weren’t great” at Wal-Mart. He adds Nordstrom (JWN) issued a warning and The Gap (GPS) results were rather grim.

The only standout says Macke was Zumiez (ZUMZ), whose shares surged after Sept. same-store sales jumped 13.9%.

Meanwhile, Target (TGT) reported lower-than-expected September sales and cut its forecast.

Symbol
Price
 
Change
%Change
GPS
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JWN
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TGT
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WMT
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ZUMZ
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OIL SURGES ABOVE $83:

The headline: Crude Jumps 2% To Above $83 On Unexpected Decline In Supplies.

Guy Adami is somewhat surprised because he expected oil to go lower. On a related note, he likes Tesoro (TSO) as a trade and anticipates the stock will have a $60 handle by the end of the month.

Symbol
Price
 
Change
%Change
ANDV
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GETTING AHEAD OF THE FED:

The headline: Fed Chairman Bernanke scheduled to speak Friday

Jeff Macke recommends listening closely to what Bernanke says. He feels the Fed rate cut cycle is “Balderdash!

Symbol
Price
 
Change
%Change
S&P 500
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STUCK WINDOWS:
The headline: Can Software Behemoth Microsoft (MSFT) Break Out Above Key $31 Level?

Microsoft shares have failed 3 times this year to cross $31 explains Dylan Ratigan.

“I love Microsoft!” replies Guy Adami. He adds, “I think $32 which was resistance will become support.”

Pete Najarian doesn’t like Microsoft because he feels the company is often behind the curve in their developments. He prefers EMC and reveals he bought EMC calls on Thursday. It’s cheap Najarian says.

Jeff Macke reveals he too is long, EMC.

Karen Finerman warns the panel if EMC spins-off the rest of VMWare, EMC’s value will come down considerably.

Symbol
Price
 
Change
%Change
MSFT
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BIOGEN'S DRUG TEST:

The headline: FDA To Decide Monday Whether Biogen (BIIB) May Market Tsyabri For Crohn's Disease

Pete Najarian says the drug could be a billion dollar franchise by 2009.

Symbol
Price
 
Change
%Change
DTST
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ELECTRONIC ARTS BUYS:

The headline:Electronic Arts (ERTS) pays $860 million for video games titles bought from Elevation partners.

Jeff Macke says they overpaid and he likes Activision (ATVI) much more.

Symbol
Price
 
Change
%Change
FEBPUX
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Trader disclosure: On Oct 11, 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 (EMC), (HAS), (INTC), (JWN), (ATVI): Najarian Owns (GOOG); Najarian Owns (EMC) Call Options: Finerman's Firm And Finerman Own (ASD): Finerman's Firm Owns (DAI), (LTD), (MSFT), (NYX), (NMX), (TGT). (WMT), (GS), (COP): Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts: GE Is The Parent Company Of CNBC