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Focus on Fundamentals

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On a day like Friday it's easy to get carried away with the market's big move. Should you trade the momentum or focus on fundamentals?

I think the market is getting a little carried away, replies Karen Finerman on CNBC's "Closiong Bell". I have no idea where the market is going short term and I try not to focus on it.

Instead I ask myself what stocks are attractively priced with a balance sheet that can withstand some pain if we are in a recession. That’s what I focus on.

How are you trading?

You can take a look at the NYSE . I think it’s attractively priced on an EPS basis and they have good volume.

Another bet I like is Pzena Investment Management . It’s an asset management firm that’s run by Rich Pzena who I consider a very smart guy.

And if you want, consider Fannie Mae , but be in it in call options so you know exactly where your downside is.

On the other side, I think you can short Capital One . I expect more consumer pain to come in things like auto loans and credit cards.

Also I recommend taking profits in Wal-Mart if you own it.

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Trader disclosure: On Apr. 18, 2008, 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 (DIS), (INTC), (MSFT), (YHOO); Najarian Owns (AAPL), (AMR), (BIIB), (CSCO), (MSFT), (NOK), (TSO), (XLF), (YHOO), (ETFC), (EMC), (NVS); Najarian Owns (BKC); Najarian Owns (BHI) Calls, (BSC) Calls, (COP) Calls, (DD) Calls; Finerman Owns (GS); Finerman's Firm Owns (JCP), (MSFT), (NOK), (PZN), (TSO), (VCLK), (VLO), (YHOO), (GE), (NOK); Finerman's Firm Owns (FNM) Calls; Finerman's Firm Is Short (COF); Charles Schwab Is A Sponsor Of "Fast Money"; GE Is The Parent Company Of CNBC