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Stocks Slide Into '08

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STOCKS SLIDE INTO '08
The headline: DowDrops 100 Pts On Final Day Of 2007, Cutting 2008 Gain To 6.4%

Wall Street has ended the year with another steep loss, explains Dylan Ratigan. The Dow Jones industrials lost 101 points. It's the latest in a string of triple-digit moves that became commonplace in 2007. Still, the Dow managed to finish with an increase of more than 6% for the year.

Going into the new year Guy Adami likes Unilver (UL) because "UL is cheaper than Procter & Gamble (PG)."

Jon Najarian agrees with Adami. He also recommends owning the Consumer Discretionary SPDR (XLY) and says he thinks consumer discretionary spending will increase in ‘08.

Carter Worth has a different take. He expects a “black” beginning to ’08.

I’m a long term optimist says Brian Schaeffer but short term I’m a pessimist. However, I like healthcare in ’08 specifically stocks such as Tennent Healthcare (TNC).

* Note: On Monday December 31st the Fast Money panel was made up of:
Brian Schaeffer, Van Der Moolen Capital Markets Managing Director
Carter Worth, Oppenheimer Chief Market Technician
Jon Najarian (Pete’s brother) aka The Monster
Guy Adami aka The Negotiator

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THAINMAKER IN '08?

The headline: Merrill CEO Thain In Talks To Sell 'Big' Stake To Chinese Or Middle-Eastern Fund.

Merrill shares dipped Monday despite reports of the foreign stake, says Jon Najarian, but then they reversed to finish higher. Investment banks are making money and personally, I think the financials are the cheapest sector in the market.

Guy Adami likes Goldman Sachs (GS).

A lot of the earnings generated by the investment banks aren’t going to exist going forward counters Carter Worth. I’m very bearish on the financials.

Brian Schaeffer agrees with Carter Worth.

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BARELY EXISTING

The headline: U.S. Existing Home Sales Climb Unexpectedly, But Median Home Price Slides 3.3%.

Both KB Home (KBH) and Hovnanian (HOV) jumped on the data says Guy Adami. He recommends looking at KBH heading into earnings, just for a trade.

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GOLD'S BEST YEAR SINCE 1979

The headline: Oil Notches Best Annual Gain In 5 Years, While Gold Posts Best Yearly Rise Since 1979.

Stick with the gold trade as well as oil, says Carter Worth.

If you want to play soft commodities play Monsanto (MON) adds Guy Adami.

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CAPTAIN KIRK'S NEW ENTERPRISE

The headline: Kirk Kerkorian's Tracinda To Buy 35% Stake In Delta Petroleum For $684M.

The trade was tipped off by options activity explains optionMONSTER's Jon Najarian. And don’t try and buy other stocks in the sector he adds. That trade won't work.

I think Kirk is looking long-term, adds Brian Schaeffer.

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PARSONS' TIME IS OVER:

The headline: Dick Parsons Steps Down Monday As Time Warner CEO To Make Way For Jeff Bewkes.

Guy Adami thinks TWX looks cheap on a valuation basis. It’s a buy, he adds.

Brian Schaeffer also likes the media stocks, particularly Disney (DIS).

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WHAT LUCK!

The headline: Irish Stocks, Among the Best Global Performers in Recent Years, Finish 2007 Down 26%.

If you were long Irish stocks, I’m sorry says Dylan Ratigan. But if you were short Irish stocks, this was fantastic!

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Trader disclosure: On Dec. 31, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Jon Najarian Owns (AGU), (AAPL), (BAC), (BSC), (C), (CSCO), (DPTR), (ELON), (GS), (LEH), (MA), (MER), (MON), (MOS), (RIMM), (SOLF), (TSO), (VLO), (WM), (UBS), (XLY), (SBUX); Jon Najarian Is Long Hang Seng Index; Armstrong Owns (UUP) ; For Carter Worth – Oppenheimer & Co. Has Received Compensation For Investment Banking Services Provided To Wachovia On May 1, 2007; Oppenheimer & Co. Is A Market Maker In (ISRG, (YHOO) and (RIMM)