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Best Week Since March

Though the S&P 500 and Dow ended Friday little changed, the move for the week was anything but small with both indexes holding onto enormous gains. For the week, the Dow rose 7.3%, the S&P 500 gained 7% and the Nasdaq climbed 7.4%; it marks the best week in 4 months.

Going forward investors will be keenly focused on earnings reports, looking to see if the latest numbers will help the market rally further. Considering we move into the peak weeks of earnings season with 25% of the S&P reporting over the next 5 days that’s no small task.

What’s the word on the Street?

It seems to me the market marches higher, speculates Joe Terranova. There’s a tremendous amount of capital sitting on the sidelines waiting to come in and I’d stay with this rally.

I’d take profits after a run like this, counters Pete Najarian. Some of the run stems from panic to the upside. I think we could be back at 900 in the S&P 500, in the blink of an eye.

I think the market needs energy to move higher before the S&P can go the next leg, adds Jared Levy. But considering we’re going into hurricane season it could happen.

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EARNINGS EDGE: B OF A, CITI OPEN THEIR BOOKS

On Friday two of the nation’s largest banks, widely considered barometers for the sector, offered investors a mixed bag of economic signals.

Bank of America, the largest U.S. bank, posted a quarterly profit that topped Wall Street forecasts but warned of a fresh surge in soured loans to credit card, mortgage and business customers.

"Growth in charge-offs and nonperforming assets still scares the daylights out of me," says Paul Miller, an analyst at FBR Capital Markets in Arlington, Virginia.

Like Goldman and JPMorgan, which delivered surprisingly strong earnings earlier this week, Citigroup reported some robust trading and investment banking results. Yet credit losses continue to be a drag.

"It's a mixed quarter. You weren't looking for a Goldman Sachs or JPMorgan-type of quarter, but we expected Citi to be a lot better than it was" in recent periods, said Michael Mullaney, who helps manage $9 billion for Fiduciary Trust Co in Boston.

How should you play banks?

I think Bank of America is interesting, says Karen Finerman. And I also think JPMorgan is a strong way to play.

I have no inclination to own Citigroup, adds Joe Terranova, but I do like BofA.

In the space I think the only way to play is Goldman and Morgan , adds Pete Najarian.

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GOOD TIMES NOT ROLLING FOR REGIONALS

The Street turned cautious on regional banks with the SPDR KBW Regional Banking sliding Friday. Many investors fear regional banks have more exposure to the weak consumer than their big bank counterparts.

What’s the trade?

I’d short regional banks, counsels Joe Terranova, and go long capital markets against it.

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EARNINGS EDGE: TECH

Shares of Apple and Yahoo! closed higher Friday in anticipation of their upcoming earnings reports. In fact next week looks to be another big week for the entire technology sector.

Tech Earnings Next Week
Monday: Texas Instruments (TXN)
Tuesday: Apple (AAPL), Yahoo! (YHOO)
Wednesday; Ebay (EBAY)
Thursday: Amazon (AMZN), Microsoft (MSFT)

What’s the trade?

I’m bullish on the chip space because of Intel’s numbers and outlook, counsels Pete Najarian. Right now, the company on my radar is NVDIA.

I’m mildly positive on Microsoft , adds Karen Finerman.

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SAVIOUR FOR CIT?

According to published reports, CIT Group is in talks with JPMorgan and Goldman about short-term financing as it looks for ways to avoid bankruptcy.

However, even if they get short-term financing it’s still not clear if they’re out of the woods, explains Chris Brendler of Stifel Nicolaus

In other words, bankruptcy is still possible over the next few days, and CIT, a 101-year-old lender that services nearly 1 million small- and mid-sized businesses, is continuing to talk with regulators about the situation.

"They haven't thrown the towel, and they still are trying to work very hard to get some sort of funding, but at the end of the day I still think that there is a very high risk of a bankruptcy event," says Sameer Gokhale, an analyst at KBW.

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BEAR CASE: DON’T BELIEVE THIS WEEK’S BOUNCE

If you watch Fast Money regularly you know that Patty Edwards of Storehouse isn’t exactly a raging bull. In fact her outlook is rather bearish. Overall she’s not impressed with this earnings season because many better-than-expected reports stem from costing cutting.

”I want to see top line revenue growth before I can get excited,” she exclaimed on the Halftime Report. Edwards thinks the economy is still far too precarious for consumers to start spending.

Edwards' Ways To Play

Long Wal-Mart
Long Philip Morris

As a result she suggests long Wal-Mart which should grab more customers due to the downturn. And she also likes Philip Morris because in the scheme of things cigarettes are a relatively inexpensive indulgence.






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Trader disclosure: On July 17th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (BTU) Call Spread; Najarian Owns (F) Calls; Najarian Owns (INTC) Call Spread; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (MCD) And Is Short (MCD) Calls; Najarian Owns (MS) Call Spread; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (SU) Calls; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO) Call Spread; Finerman's Firm Owns (MSFT), (NOK), (WMT), (APC); Finerman's Firm And Finerman Own (WFC) Preferred Shares, Finerman's Firm Is Short (WFC); Finerman's Firm And Finerman Own (BAC) Preferred Shares; Finerman's Firm Is Short (IJR), (IYR), (IWM), (MDY), (SPY), (USO); Finerman's Firm And Finerman Own (RIG); Terranova Owns (TER), (RIMM), (SUN), (MSFT), (FTO); Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

For Patty Edwards:
Edwards Owns (WMT), (PM)

For Joe Terranova:
Virtus Investment Partners Owns More Than 1% Of (ABD)
Virtus Investment Partners Owns More Than 1% Of (CBL)
Virtus Investment Partners Owns More Than 1% Of (CAL)
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (MEE)
Virtus Investment Partners Owns More Than 1% Of (DBC)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (DBA)
Virtus Investment Partners Owns More Than 1% Of St Mary Land & Exploration Co
Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights
Virtus Investment Partners Owns More Than 1% Of (SKT)
Virtus Investment Partners Owns More Than 1% Of (TNB)
Virtus Investment Partners Owns More Than 1% Of (UA)
Virtus Investment Partners Owns More Than 1% Of (WBMD)

For Jared Levy:
Peak6 Investments Is Short And Has An Options Position In (AGU)
Peak6 Investments Is Short And Has An Options Position In (AMZN)
Peak6 Investments Is Short And Has An Options Position In (BBT)
Peak6 Investments Is Short And Has An Options Position In (BTU)
Peak6 Investments Is Short And Has An Options Position In (EBAY)
Peak6 Investments Is Short And Has An Options Position In (FCX)
Peak6 Investments Is Short And Has An Options Position In (GE)
Peak6 Investments Is Short And Has An Options Position In (GS)
Peak6 Investments Is Short And Has An Options Position In (HAS)
Peak6 Investments Is Short And Has An Options Position In (IGT)
Peak6 Investments Is Short And Has An Options Position In (JPM)
Peak6 Investments Is Short And Has An Options Position In (KO)
Peak6 Investments Is Short And Has An Options Position In (MAT)
Peak6 Investments Is Short And Has An Options Position In (MCD)
Peak6 Investments Is Short And Has An Options Position In (MO)
Peak6 Investments Is Short And Has An Options Position In (NOK)
Peak6 Investments Is Short And Has An Options Position In (PENN)
Peak6 Investments Is Short And Has An Options Position In (PLCE)
Peak6 Investments Is Short And Has An Options Position In (PM)
Peak6 Investments Is Short And Has An Options Position In (POT)
Peak6 Investments Is Short And Has An Options Position In (SBUX)
Peak6 Investments Is Short And Has An Options Position In (SHFL)
Peak6 Investments Is Short And Has An Options Position In (SU)
Peak6 Investments Is Short And Has An Options Position In (UPS)
Peak6 Investments Is Short And Has An Options Position In (WMT)
Peak6 Investments Is Short And Has An Options Position In (XLF)
Peak6 Investments Owns And Has An Options Position In (AXP)
Peak6 Investments Owns And Has An Options Position In (BA)
Peak6 Investments Owns And Has An Options Position In (BAC)
Peak6 Investments Owns And Has An Options Position In (C)
Peak6 Investments Owns And Has An Options Position In (CAT)
Peak6 Investments Owns And Has An Options Position In (CIT)
Peak6 Investments Owns And Has An Options Position In (COF)
Peak6 Investments Owns And Has An Options Position In (F)
Peak6 Investments Owns And Has An Options Position In (GLD)
Peak6 Investments Owns And Has An Options Position In (GOOG)
Peak6 Investments Owns And Has An Options Position In (IBM)
Peak6 Investments Owns And Has An Options Position In (INTC)
Peak6 Investments Owns And Has An Options Position In (JNJ)
Peak6 Investments Owns And Has An Options Position In (LM)
Peak6 Investments Owns And Has An Options Position In (MMM)
Peak6 Investments Owns And Has An Options Position In (MRK)
Peak6 Investments Owns And Has An Options Position In (MS)
Peak6 Investments Owns And Has An Options Position In (MSFT)
Peak6 Investments Owns And Has An Options Position In (PFE)
Peak6 Investments Owns And Has An Options Position In (SJM)
Peak6 Investments Owns And Has An Options Position In (TXN)
Peak6 Investments Owns And Has An Options Position In (USB)
Peak6 Investments Owns And Has An Options Position In (USO)
Peak6 Investments Owns And Has An Options Position In (UNG)
Peak6 Investments Owns And Has An Options Position In (YHOO)



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