It's A Mad, Mad Market


Stocks staged a brief comeback on Friday after investors heard that Freddie and Fannie would be allowed to take advantage of the Fed’s discount window.

But the rally was short lived and ultimately Freddie and Fannie dragged down the Dow by triple digits.

Investors can’t help but wonder how much farther the two institutions might fall.

“I don’t know that Freddie and Fannie are going higher but I think with the policy shift out of Washington they’re probably done going down,” speculates Guy Adami on CNBC’s “Closing Bell.”

”If you’re short these stocks then you’ve had a great run but take money off the table and go away. To try and trade these stocks today is just a fool’s game,” he says

But Adami also thinks the distress has created some price displacement in other sectors. In other words other stocks are being dragged down that probably shouldn't be.

“I’d look at Shaw Group , Flour Corp and McDermott,” Adami counsels.

“And in my opinion the steel story works too. At current levels United States Steel looks attractive. Typically the best trading opportunities come along in bear markets!"

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Trader disclosure: On July 11, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Owns (INTC), (USO), (WMT), (MSFT); Najarian Owns (AAPL), (CHK), (TSO), (XLF); Najarian Owns (FNM) And (FNM) Puts; Najarian Owns (LEH) And (LEH) Puts; Najarian Owns (RIMM) Calls, (SLB) Calls, (YHOO) Calls, (CSCO) Calls; Finerman Owns (GS); Finerman's Firm And Finerman Own (PDE); Finerman's Firm Owns (MSFT), (SUN), (TSO), (VLO), (GE), (MO); Finerman's Firm Is Long SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Is Short (BIG), (RTH), (IJR), (MDY), (SPY), (IWM); Finerman's Firm Owns (TGT) Calls