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Commodities Shaken, Stocks Not Stirred

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OIL DROPS, FAILS TO HELP STOCKS

Stocks dropped ahead of the Fed decision, and commodities were beaten senseless following a huge spike in trading volume around midday.

Jeff Macke explained that we should all be very happy that the stock market behaved as well as it did facing such downward pressure from the commodities sell-off.

Guy Adami cautioned viewers "When markets go down on good news it's telling you something. A lot of people got blown out, it's not a one day event, more to come."

While discussing the financial sector, Karen Finerman still sees many of the same issues that existed before still needing to work their way out for another quarter or two. Macke added, "Anyone telling you they have confidence in the financials is either lying or not paying attention." Tim Seymour didn't think that today's trading was that constructive for financials.



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THAIN & MERILL

Merill Lynch CEO, John Thain appearing on Closing Bell with Maria Bartiromo said that Merill will be back to profitability shortly, that they will not be cutting their dividend, and are "well capitalized".

Adami commented that "The market has given you incredible opportunities in financials over the last year to buy stocks on certain days."

Macke agreed that "certain days" was the key, and believes that there is only one strategy that seems to work and its "Selling the rips, and buying the panic."

Seymour thinks Thain is correct when he said that Merill may have gotten these off before the other guys.


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WHALE WATCHING: CARL ICAHN

Carl Icahn is in the news for two separate items, first saying that Bristol Myers offer for ImClone was too low, and second with his investment in WCI Communities going sour as the company files for bankruptcy.

Finerman says that the WCI thing was a slow train wreck coming.

Adami believes that if you've been in ImClone, great job, take your money and run.

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EMERGING MARKETS BREAKING DOWN

As The Emerging Markets ETF (MSCI) Slid by 3% Monday, the Fast Money gang discussed if high oil and commodities prices will kill emerging market growth?...

Emerging markets are cheap on a valuation basis says Tim Seymour and mentioned that he recently increased his short in the EEV.

Jeff Macke's advice on emerging markets is to "Get out, just get out."
















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On Aug 4, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman's Firm Is Short (IYR) (IJR) (MDY) (SPY) (IWM) (COF) (BBT) (XLF), Finerman's Firm And Finerman Own (C) Leaps, Finerman Owns (GS), Finerman's Firm Owns (MO) (MSFT) (PM) (SUN) (TSO) (VLO) (WLP) (UNH) (AET), Macke Owns (MSFT) (WMT) (COST), Macke Is Short (TM), Adami Owns (AGU) (C) (BTU) (GS) (INTC) (MSFT) (NUE), Seymour Owns (AAPL) (CSCO) (INTC) (MER) (MSFT) (TSO) (EEM) (F) (SHLD), Seygem Asset Management Owns (EEV), Joe Terranova Owns (BNI), Jon Najarian Owns (EMC) Calls, Jon Najarian Owns (CSCO) Calls