Safety After Sudden Sell-Off

Looking forward, the traders gauge Friday’s sell-off in terms of next week’s earnings flood. What are the areas of safety as the focus moves from financials and industrials to tech, pharma and consumer names?

Guy Adami predicted Microsoft (MSFT) will “knock the ball out of the playing field” when it reports next Thursday. He expects to hear that the company is making money hand-over-fist off the Halo 3 video game phenomenon and strong PC sales and the $32 level, long a point of resistance, could change to a level of support for the stock.

Jeff Macke also recommended Microsoft for its “phenomenal” fundamentals and because it is finally making money off its X-Box gaming console.

ExxonMobil (XOM) works as a great short next week, Guy added. The fact that the refiners can’t seem to push through even with oil so high leads him to conclude that stocks simply “don’t want to go higher right now.”

Pete Najarian is still bullish on the oil services sector, which is not dependent on the price of oil the way the refiners are. There was some panic to get out and take profits in the service names but all their numbers should remain outstanding, Pete said.

Pete also sees safety in Big Pharma. He thinks the drug companies want to improve their pipelines and could to acquire a biotech to do it. He speculates that Amylin (AMLN), Biogen (BIIB) and Isis (ISIS) could all be takeover targets.

Jeff Macke recommended buying pharmaceutical stocks over biotech stocks because he feels they aren’t as speculative. When the market is as volatile as it is, Macke likes the security pharma provides despite the potential of less lucrative gains.

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Trader disclosure: On Oct 19, 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 (ATVI), (EMC), (INTC); Najarian Owns (C), (CY), (GOOG); Finerman Owns (GS); Finerman Owns PHLX Oil Service Sector Index Puts; Finernman's Firm Owns (ASD), (TGT), (MO), (BIIB), (MSFT), (WMT); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm And Finerman Own (HD)