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Google Kicks Off Tech's Big 2010

On Tuesday Google stole the technology spotlight with the debut of a new smartphone – a company first.

Called the Nexus One the new device is bristling with features from speech recognition to a 3D interface and marks the first time the company has designed and sold its own gadget.

It will ship immediately from Google's online store for $179 with the purchase of a two-year contract from Deutsche Telecom's T-Mobile USA, or $529 without a service plan.

Although the gadget has been touted as an iPhone killer by some, advanced reviews suggest otherwise.

What’s the tech trade?

Strategy Session with the Fast Money traders

I think the price is a major problem, muses Pete Najarian. That was also the problem for the iPhone when it first came out. When Google drops the price I think it will begin to sell. But with that said, the Nexus One is not the driver for Google. Fundamentally I still like the Google story.

I don’t think the Nexus One will have an impact on Google’s bottom line, says Piper Jaffray analyst Gene Munster, nor will it have an impact on Apple . It just doesn’t change the landscape.

I’d watch Qualcomm , as a potential winner on the Nexus One as well as other smartphones, and RIM as a potential loser, adds Guy Adami

I’m also watching Palm, says Pete Najarian. At $10 they could be a takeover target.

At $10 I don’t understand why Dell doesn’t step in, muses Joe Terranova. They’ve said that they want to be in the smartphone market and this may be their chance.

I’m also bullish Apple, adds Najarian. They just announced that 3 billion apps have been downloaded, 1 billion of those in the past two months. That’s significant.

On Monday’s Fast Money widely followed analyst Mark Mahaney said the new smartphone could expand Google’s mobile search business. And Mahaney was very bullish on Google for mobile search.

Read More:

Google Unveils Nexus One 'Superphone'

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FORD LEADING GLOBAL INDUSTRIAL COMEBACK

The Fast Money traders are closely watch the action in the auto sector after Ford said it sold a total of 184,655 vehicles last month, easily outstripping expectations. That’s up about 23% over the same month last year.

What’s the trade?

If you’re long I think this is the exit point, says Guy Adami. I’d get out. I think it’s a great stock but it looks due for a pullback.

Fundamentally I like Ford but I’d be cautious over the next few days because of the way it traded at the close, adds Joe Terranova.

I think Ford may break higher, counters Tim Seymour. They’re gaining market share.

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CHART OF THE DAY: HOT ROLLED COIL STEEL

The latest dats suggests that price for hot rolled steel is heating up around the world on increased demand. Take a look:

(Price Change Last 4 Weeks)

US +9.10%
Southern Europe +6.2%
Northern Europe +7.4%

This kind of action says to me that steel makers have pricing power, explains Joe Terranova. I think steel may be among the best performing commodities of 2010.

If you want to play steel, I’d do it with POSCO, counsels Tim Seymour.

Or look at Cliffs, says Pete Najarian.

In this space I like Walter Energy, adds Guy Adami.

And you can play ETFs, all the traders add. Three are below:

Jefferies Industrial Metal ETF (CRBI)
Barclays iPath Industrial Metals ETF (JJM)
PowerShares Base Metals ETF (DBB)

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WALL STREET STOPS LISTENING TO WHITNEY?

Shares of Goldman Sachs closed higher on Tuesday, despite word that influential analyst Meredith Whitney cut 4th quarter estimates on Goldman Sachs to $5.50 from $6.

It was the second cut she’s made since Dec. 17th. And she also cut full year 2010, 2011 and 2012 estimates.

What’s the bank trade?

Meredith Whitney isn’t the first analyst to cut estimates, explains Fast Money trader Pete Najarian on the Halftime Report. And part of the current bearishness in Goldman and other financial firms stems from the light trading volume we saw December. (Less volume means lower revenues.)

However, considering the stock's recent slide I think a lot of the news is already priced into Goldman, Najarian adds. Going forward if they still have the earnings power that I think they do, it’s a cheap stock with potential for great upside.

And Meredith Whitney still has one of the highest price targets on the Street, adds Guy Adami.

In the space, I’m keeping an eye on HSBC , adds Tim Seymour.

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AFTER HOURS ACTION: MOSAIC

After hours Tuesday, fertilizer producer Mosaic posted lower than expected quarterly earnings, hurt by currency losses, and its shares fell 1.6 percent lower in post-market trade.

For the fiscal second quarter ended November 30, the company posted net income of $107.8 million, or 24 cents per share, versus $959.8 million, or $2.15 per share, in the year-ago quarter when the company recorded a $673 million gain from an asset sale.

What’s the trade?

I’d buy the dip, counsels Tim Seymour. And I’m a buyer of Bunge.



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Trader disclosure: On Jan 5th, 2010, 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), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Najarian Owns (BG) Call Spread; Najarian Owns (BP); Najarian Owns (CLF); Najarian Owns (MRVL); Najarian Owns (MS); Terranova Owns British Pound Futures; Terranova Is Short Crude Oil Futures; Terranova Owns (BAC); Terranova Is Short (CMA); Finerman's Firm Owns (CBY); Finerman's Firm Is Short (KFT); Najarian Owns (FCX); Seymour Owns (AAPL), (BAC), (BG), (F), (INTC), (MSFT), (MT), (TSL), (TTM), (VALE)

Add'ls Disclosures for 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 (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (SKT)

For Gene Munster
Piper Jaffray Is A Marekt Maker In (AAPL), (GOOG), (EBAY), (YHOO), (AMZN)

For Craig Berger
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (ONNN)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (INTC)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (BRCM)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (NVDA)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (MRVL)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (LLTC)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (MXIM)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (ATML)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (LSI)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (SLAB)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (MSCC)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (QCOM)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (ATHR)



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