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Forget Freddie, The Bottom May Be In

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STOCKS REBOUND, OIL DIPS INTO BEAR MARKET

Coming back from a 90 point loss after a much worse than expected loss from Freddie Mac, the Dow rebounded as U.S. stocks hit a six-week high. The trend of health & personal care stocks doing well in this market continues.

Guy Adami thinks the bottom is in for the short term. "They wanted to sell financials today. They wanted to sell Merill Lynch, and they didn't do it." said Adami.

Jeff Macke believes Freddie Mac gave lots of excuses for the market to sell financials, but when asked if he was a bull responded "Ehh, not really".

Karen Finerman cautions that there is still a lot of market noise going on.

Joe Terranova liked what we saw today in the consumer discretionary sector, materials, and highlighted the move upward for Research In Motion as having some cause to be optimistic about.

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CISCO LEADING THE TECH CHARGE

The tech sector rose with Cisco leading the way. A top UBS analyst expects a massive Microsoft share buyback could be completed soon.

Finerman wouldn't buy Microsoft based upon expectation of a buyback as she feels the buyback would close the door on a Yahoo deal, and believes that Microsoft isn't ready to do that yet.

Macke saw some nice news in tech today, but it wasn't screaming higher. He attributes the move as being more technically based and bounce backs.

Adami is not bullish on Cisco here.

Terranova loves technology right now. He believes tech doesn't have the contagion that financials have.

During a discussion on Sybase , Macke added that "he hadn't thought of them since the tech bubble burst". He doesn't want to go long on Sybase.

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OIL FALLS 20% FROM HIGH

As oil entered bear market territory, Terranova revealed that he had no current positions in oil, but was instead focused on undervalued oil affected equities. He is long on Valero , and long on a transport. The integrated names are attractive to him. He also recommended looking at possible plays in Petrobras , Conoco Phillips and Suncor Energy .

Adami feels that Exxon Mobil is a good looking stock at current levels and says you can buy Exxon right now.

Finerman believes Sunoco came out with good earnings and was up today, which should bode well for Exxon Mobil. However, she's not more inclined to go long on the integrated oil names, but prefers some of the refiners.

Macke says "Yuck to the whole group!" and added that Exxon Mobil's chart looks like "grim death".

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FREDDIE MAC PLUNGES

With worse than expected earnings and a not so reassuring interview with the company's CEO Dick Syron, what's there to make of Freddie Mac and this space.

Finerman doesn't understand the plan at Freddie.

Macke recommended that Karen Finerman could be the CEO, saying that Dick Syron doesn't know the plan either.

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NASDAQ HELPS LIFT THE NASDAQ

The NASDAQ exchange showed some signs of life today led by NASDAQ OMX (ironically).

Adami likes the valuation on NASDAQ compared to the other exchanges. However, he said he cannot recommend buying the stock.

Terranova prefers to be long in the CME Group .

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SONY BETS ON MUSIC

Sony plans to buy Bertelsmann's 50% stake in Sony BMG gaining control of the world's second largest record company.

Macke found a couple of positives to say on the acquisition. He thinks maybe it makes sense for Sony, and maybe they got a value.