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Stocks Starting To Crack?

The S&P 500 fell for a third straight day on Friday after weaker than-expected results from Dell and DR Horton left investors questioning the strength of the recovery.

Also, a rebound in the U.S. dollar pressured the prices of global commodities, including crude oil, which fell below $77.

Following the S&P 500's gain of more than 60 percent from its 12-year closing low of March 9, investors have become more sensitive to signs of weakness as they seek to justify lofty share valuations.

For the week, the S&P 500 fell 0.2 percent, the Nasdaq shed 1 percent and the Dow rose 0.5 percent.

The Dow's losses were curbed by a rotation into defensive stocks, companies considered better able to withstand an uncertain economy, such as Coca-Cola and Merck .

What must you know to trade this market?

Strategy Session with the Fast Money traders

It seems to me that a lot of fear entered the marketplace this week but I’m not sure the fear is justified, says Joe Terranova. I would not make any changes to the portfolio just yet. We’re currently trading between 1070 and 1110 - that's a consolidation range.

I think we’re looking at a mutual fund Monday, adds Pete Najarian. That’s a Monday when mutual fund money flows into the market and it generate bullish momentum.

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TRADE OF THE WEEK: GOLD

U.S. gold futures ended higher for a sixth straight session on Friday despite a dollar rise. The late session gold rally in the face of a stronger dollar could boost sentiment early next week, pundits say.

What’s the trade?

I’m perplexed, says Karen Finerman. I wouldn’t get in here. Once I get into gold that’s the top, she chuckles.

I’m watching aggressive sellers come into this trade and attempt to drive the market lower, says Joe Terranova. But it’s not working. But to make me bullish, I’d need to see a blow-off top.

I don’t think it’s that speculative, counters Steve Grasso. It feels to me like gold is going higher as central banks attempt to hedge their dollar positions.

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MARKET BUZZKILL: DELL DRAGS TECH INTO THE DUMPS

Dell dragged down the tech sector after the company reported a 54 percent slide in quarterly profit and sales that missed estimates.

The data rounded off a rocky week for the technology sector, including a major downgrade of the semiconductor space by BofA - Merrill.

What’s the tech trade?

There are catalysts out there and if investors decide that Dell deserves that same P/E ratio as rival Hewlett Packard then I can see it trading higher, speculates Pete Najarian.

If you want to play the space, I’d do it directly with H-P , says Karen Finerman.

I’m watching Google , says Joe Terranova. It looks positioned to go north of $600 by the end of the year.

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INVESTORS SEEKING SAFETY IN GOVT. DEBT

Short-dated U.S. Treasuries rallied on Friday, sending two-year yields to 11-month lows, as investors sought the safety of government bonds on fears that this year's stock market recovery had finally come to end.

What must you know?

I think this is a duck and cover trade, says Steve Grasso. Money managers are taking profits and they have to do something with the funds so they put it in Treasurys.

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THE OPRAH TRADE

Oprah Winfrey said on Friday that she will end her popular TV show in 2011 because it "feels right in her bones" after 25 years, and urged viewers not to believe rumors of why she's quitting.

Winfrey, 55, did not divulge her future plans.

What’s the trade?

The speculation is that Oprah is leaving her show to work on OWN – the Oprah Winfrey Network, explains Steve Grasso, and that’s a collaboration with Discovery .

In the media space, I’m watching DirecTV , adds Joe Terranova. I think it could be a takeover target.

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TOPPING THE TAPE: WAL-MART FLEXING ITS MUSCLES

With only days to go until Black Friday, the Retail ETF closed lower. How should you game retail into the all important holiday season?

Find out what insights Jon Najarian has gleaned from the options world. Watch the video now.

You can find our conversation with Jon Najarian at the end of the Word of the Street video.



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Trader disclosure: On Nov. 20th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Pete Najarian Owns (DE) Calls; Pete Najarian Owns (DELL) Calls; Pete Najarian Owns (GE) Calls; Pete Najarian Owns (INTC), Is Short (INTC) Calls; Pete Najarian Owns (KRE) Calls; Pete Najarian Owns (LLY) Calls; Pete Najarian Owns (UUP) Calls; Pete Najarian Owns (BRCD), Is Short (BRCD) Calls; Pete Najarian Owns (LAZ), Is Short (LAZ) Calls; nerman's Firm Is Short (IJR), (IWM), (MDY), (SPY), (USO), (UNG), (TLT); nerman's Firm Owns (CLX), (CSCO), (MSFT), (NOK), (WMT), (SFC), (M); nerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Calls; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (SFC); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (BCR), (BDX); Finerman's Firm Owns (BGC), (BGC) Calls; Terranova Owns (UNG) April 2010 Calls; Terranova Owns (POT), (GOOG), (AAPL), (FCX), (RIMM); Grasso Owns (AAPL), (ABK), (ASTM), (BAC), (BGP), (C), (COST), (FAZ), (PFE), (MRK), (V), (WMT)

GE Is The Parent Company Of CNBC
NBC Universal Is The Parent Company Of CNBC

For Steve Graso
Stuart Frankel & Its Partners Own (CMCSK)
Stuart Frankel & Its Partners Own (CUBA)
Stuart Frankel & Its Partners Own (GERN)
Stuart Frankel & Its Partners Own (HSPO)
Stuart Frankel & Its Partners Own (NWS.A)
Stuart Frankel & Its Partners Own (NXST)
Stuart Frankel & Its Partners Own (NYX)
Stuart Frankel & Its Partners Own (PDE)
Stuart Frankel & Its Partners Own (PRST)
Stuart Frankel & Its Partners Own (RDC)
Stuart Frankel & Its Partners Own (ROK)
Stuart Frankel & Its Partners Own (TLM)
Stuart Frankel & Its Partners Own (XRX)
Stuart Frankel & Its Partners Own (SDS)
Stuart Frankel & Its Partners Own (TBT)
Stuart Frankel & Its Partners Are Short (QQQQ)
Stuart Frankel & Its Partners Are Short (CL)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
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 (XLY)
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 (UA)

For Brian Stutland
Stutland Equities Is A Market Maker In VIX, Is Long Volatility

For Jon Najarian
Jon Najarian Owns (AMZN)
Jon Najarian Owns (WMT), Is Short (WMT) Calls

For Robert Stevenson
FPK Or Affiliates May Seek Investment Banking Compesnation From (RYL), (TOL), (DHI), (PHM), (LEN), (KBH) In Next 3 Months


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