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Financials Lead Market Higher

Investors are keeping a close eye on banks stocks, which closed higher despite some tough talk from lawmakers.

Congress summoned CEOs from the nation’s largest banks including Goldman Sachs, Morgan Stanley and JPMorgan to the nation’s capital to answer pointed questions about the causes of the Wall Street crisis and events that followed.

However the scrutiny did not deter investors who bid the Bank ETF higher as the executives defended their actions as well as compensation practices.

How should you play bank stocks, now?

Strategy Session with the Fast Money traders

I’m long Bank of America, says Karen Finerman and I’m looking to buy more, but lower. And I’m also long JPMorgan calls.

I’m bullish JPMorgan and a buyer ahead of earnings, says Joe Terranova. I think the stock goes north of $50.

A lot of investors are like Joe; they’re bullish JPMorgan, muses Guy Adami. However, I think this bank may surprise to the downside.

I think the stock that looks most interesting in the space is Goldman, adds Tim Seymour.

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DEVELOPING STORY: CALL GOOGLE’S BLUFF OR BUY ‘BING’?

Investors kept a close eye on Internet stocks after Google threatened to withdraw from China because of censorship and cyber attacks.

According to published reports, large-scale cyber attacks “have been under way for weeks with the attackers accessing the Gmail accounts of Chinese human-rights activists.

On the news, shares of rival Baidu soared.

However it appears Wall Street isn’t convinced that Google is ready to pull the plug. In fact analysts are all over the map. Take a look

Likelihood Of Google China Exit
-Piper Jaffray: Only 35% Chance
-Broadpoint: Highly Likely
-UBS: Very Likely
-Jefferies: Likely
Source: CNBC.com

What’s the trade?

I shorted Baidu on the news, reveals Tim Seymour. I thought the move higher was overdone. But it was a short-term trade; I’ve already covered. Personally, I don’t believe Google is leaving China. It’s much more bark than bite.

As a shareholder I don’t like the news but I agree that Google isn’t going to leave China, adds Karen Finerman.

Elsewhere in tech, I’d put RIM on the radar, says Guy Adami. If I were short RIM, I’d buy here to cover.

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TAKE YOUR POSITION: IS IT ALL PRICED INSIDE?

Intel staged a bullish reversal ahead of its quarterly report on Thursday, the beginning of technology earnings season.

The chip maker is widely expected to benefit from renewed spending by corporations on PC upgrades, however some investors worry about a potential, short-lived correction in semiconductor stocks.

Intel is closely watched because its chips are found in everything from personal computers to smartphones and its results are used as a barometer for the health of the overall tech sector.

What’s the trade?

I’m bullish on Intel, reveals Joe Terranova. And in the space I also like Qualcomm and Microsoft, he adds. And I'm long EMC .

I’m long Intel but I’m not adding to my position ahead of earnings, says Tim Seymour. However, at 11 times next year’s earnings I think it’s cheap.

Intel keeps having trouble at $21, reminds Guy Adami. I’m skeptical on Intel because so many stocks in the space have made new 52-week highs, but this one has not.

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TRADE AGAINST SENTIMENT AND GET LONG TREASURIES?

According to a new survey, investors are more bearish on Treasurys now than anytime in the past two years. So – should you turn bullish?

Bloomberg says investors widely expect yields will rise for a second consecutive year as U.S. debt sales climb above $2 trillion and the Federal Reserve unwinds stimulus programs. (Remember yields and price are inversely related.)

Their survey also shows sentiment is also the most pessimistic on record for the U.K., Spain and Switzerland, where governments also enacted measures to support their economies

So – with so much negative sentiment in the bond market -- should you turn bullish? Sounds counter-intuitive but Steve Cortes likes the contrarian play.

Hear more. Watch the video now!

You can find out conversation with Steve Cortes at the end of the Word on the Street video.




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Trader disclosure: On January 13th, 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), (MSFT), (NUE), (BTU); Finerman's Firm Is Short (IJR), (IWM), (MDY), (SPY), (TLT), (UNG), (USO); Finerman's Firm And Finerman Own (GOOG); Finerman Owns (JPM) Calls; Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spread; Finerman Owns (BAC) Preferred, (BAC); Finerman Owns (AAPL), (BDX), (BSX); Finerman's Firm Owns (WFC) Preferred; Seymour Owns (AAPL), (AA), (BAC), (FXI), (INTC), (MSFT); Terranova Is Short (AGU), (CMA), (JCI), (CAL), (ESS), (ICE); Terranova Owns (QCOM), (MSFT), (JPM), (FCX), (EMC), (FTO), (XOM), (BAC); Terranova Owns (XHB) March Puts; Terranova Is Long March British Pound Futures; Terranova Is Long Copper Backwardation: Long May 2010 Futures, Short July 2010 Futures

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 Steve Cortes
Cortes Owns 5 Year Note Futures

For Jon Najarian
Jon Najarian Owned (MON) Calls Today


CNBC.com with wires