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The Selling Continues

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THE SELLING CONTINUES:

The headline: S&P 500 Falls a 4th Day, Losing 1% as Technology, Commodity Shares Slide.

Dylan Ratigan explains that the market split down the middle Monday with 4 S&P sectors closing up and 5 closing down. Positive S&P sectors: financials, healthcare, consumer staples, consumer discretionary. Negative S&P sectors: tech, energy, utilities, materials, industrials

Pete Najarian says the volatility index never waned during Monday’s trading. He feels very bearish because the market traded poorly at the end of the day’s session.

Jeff Macke believes the market should have bounced on Monday but didn’t. He too feels bearish.

Guy Adami suggests the Dow drops to 12,700.

Karen Finerman sees it differently. She explains the day’s trading could have been much worse. She finds that encouraging.

Symbol
Price
 
Change
%Change
S&P 500
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TECH STILL TUMBLING:

The headline: As Wall Street Sours On The Tech Trade The NASDAQ Drops.

Pete Najarian recommends keeping an eye on BEA Systems (BEAS). He doesn’t think IBM will bid for the company. No one other than Oracle (ORCL) will acquire BEAS, he says.

Guy Adami likes Hewlett Packard (HPQ) going into earnings.

Symbol
Price
 
Change
%Change
HPQ
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ORCL
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OPTIONS ACTION: EMC & VMWARE:

The headline: Pete Seeing Unusual Options Activity In EMC Corp (EMC), Vmware (VMW)

Najarian explains that institutional investors are buying December 20 calls and selling the December 22.50 calls. To him that suggests the stock could go higher. He speculates that EMC will have a 23-handle by the end of the year.

Symbol
Price
 
Change
%Change
EMC
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VMW
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SOFTWARE & SAUVIGNON BLANC:

The headline: Dealmaking Strong Monday As IBM (IBM) Buys Software Maker Fortune Brands (FO) Sells U.S. Wine Unit.

Karen Finerman thinks in general corporate balance sheets are in good shape. She feels private equity is temporarily out of the game and the market will now see an increased volume of M&A with corporate buyers.

Symbol
Price
 
Change
%Change
IBM
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BATTLE OF RIO TINTO:

The headline:Rio Tinto (RTP) Shares Hit Record As BHP Billiton (BHP) Pushes $140B All-Share Offer.

Karen Finerman anticipates the deal will encounter some anti-trust issues, However, she thinks the issues are solvable. But, in the event they aren't, the downside risk is fairly high.

Pete Najarian believes the two companies control 77% of the world’s iron ore production.

Symbol
Price
 
Change
%Change
OGT
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VIOXX ROCKS STOCKS:

The headline:Merck (MRK), Big Pharma Keep Momentum After Last Week's $4.85B Vioxx Settlement

Guy Adami tells investors, if you want to be in drugs, buy Johnson & Johnson (JNJ).

Jeff Macke adds a nice defensive portfolio would be Merck, Procter & Gamble (PG) and Church & Dwight (CHD).

Symbol
Price
 
Change
%Change
B9B
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JNJ
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MRK
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PG
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Trader disclosure: On Nov. 12, 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), (YHOO), (EMC); Najarian Owns (AMTD) Options, (BHP) Options, (C) Options, (CSCO) Options, (DISH) Options, (EMC) Options, (GOOG) Options, (GS) Options, (YHOO) Options; Finerman's Firm And Finerman Own (GS), (HD); Finerman's Firm Owns (AMTD), (PLCE), (KSS), (NMX), (NYX), (WMT), (YHOO), (LTD); Finerman's Firm Is Short (IWM),(IJR), (SPY), (MDY), (IYR), (LEH), (MER; Finerman's Firm Owns (MSFT) Options, (TGT) Options; Finerman's Firm Owns (HD) Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts; Charles Schwab Is A Sponsor Of Fast Money

CORRECTION: Wachovia bought Golden West, Not Washington Mutual as stated by guest trader Tim Seymour on Friday November 9th so that's not a reason to dislike WaMu's stock.