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Stocks Near Credit Crisis Low

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STOCKS NEAR NEW CREDIT CRISIS LOW

Stocks fell on Monday due to concerns about an accelerating global slowdown after Japan fell into recession and Citigroup said it would cut 52,000 jobs, far more than had been expected.

Also the weekend meeting of the world's 20 largest economies offered no immediate solutions to the financial crisis and had little positive impact on the market.

Ontop of that word hit the Street that Treasury Secretary Hank Paulson was unlikely to launch a substantial new rescue program but would instead keep remaining TARP funds in reserve for the next administration.

Strategy Session with the Fast Money Traders

I think we’re in an extraordinarily precarious situation, says Guy Adami. We’re still okay but if the Dow tests 7800 again it probably won’t hold. And if we close below 7800 there’s a good chance we see Dow 6000.

With so much policy hanging in the balance I wouldn’t trade this market, adds Tim Seymour. And do the remarks from Paulson mean that we’re going to be in a vacuum for the next 2 months? That’s no good.

It’s important to recognize that the financials have not participated in any of the recent rallies, adds Pete Najarian. The XLF is right on its 52-week lows.

I expect to see more pain to come, adds Karen Finerman. I’m short BBT which has just received money from the TARP program. The commercial real estate troubles seem very serious. As a result I’m short banks with big exposure to commercial real estate as well as some REITs such as Vornado . Or you can short the IYR but know that's well of its highs.

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OIL DROPS BELOW $55

Oil prices dropped more than 3 percent on Monday to the lowest level in nearly 22 months as Japan became the latest major economy to fall into recession, stoking concerns that global fuel demand will fall further.

I really believe that there’s no money in the commodity market right now, says Guy Adami. The only play I like is trading in the wake of Warren Buffet’s position in ConocoPhillips . It’s bouncing around $40 and I think that’s support.

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CITI LEADS PLUNGE IN FINANCIALS

Shares of Citigroup led the financial services sector lower after the bank announced plans to cut 52,000 jobs by early next year in a dramatic move to restore the No. 2 U.S. bank to health as it combats mounting debt losses and sagging economies worldwide.

The cuts announced by Chief Executive Vikram Pandit on Monday affect 15 percent of Citigroup's workforce, and are in addition to 23,000 jobs eliminated between January and September.

Dylan Ratigan is outraged over the entire crisis and that hard working people are losing their jobs while top management collected million in compensation.

He says, if we live in a nation that retakes your home when you can no longer afford it, then the system should be set up to recapture capital that was never made. In other words, someone like former Merrill CEO Stan O’Neal should come forward and say the company didn’t work under my leadership, here’s $100 million back toward solving the problem.

Under the laws of the land, at the time, what most of these CEOs did at the time was legal, adds Jon Najarian. But if you granted them all immunity in the event that some of it was fraudulent then maybe they would come forward.

STOCKS TO WATCH THIS WEEK?

If you’re trying to make rhyme or reason of the market, you’re not alone. In fact the pros are having a tough time with it too.

Fortunately, we have OptionMonster Jon Najarian watching the options market. Unusually high volumes in either put or call buying can signal where a stock may be heading next.

According to Najarian two stocks appear poised to buck the bad tape this week.

He says, for the short term he’s been in Lowes and he's keeping an eye on Limited Brands as an earnings play.






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Trader disclosure: On Nov.17, 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); Pete Najarian Owns (ETFC); Pete Najarian Owns (MOS) And Is Short (MOS) Calls; Pete Najarian Owns (SCHW) And Is Short (SCHW) Calls; Pete Najarian Owns (CVX) Put Spread; Pete Najarian Owns (ADM) Call Spread; Finerman's Firm Owns (MSFT); Finerman's Firm Owns (OIH) Puts; Finerman's Firm Owns (ROH) Calls; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (RTH), (USO), (BBT), (COF), (VNO); Seymour Owns (AAPL), (BAC), (ETFC), (F), (INTC), (MER); Seymour Is Short (TM)

Jon Najarian Has A Long Call Position In (LOW); Jon Najarian Has A Long Call Position In (INTU; Jon Najarian Has A Long Call Position In (LTD)

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