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Gaming Apple In The Wake Of Blockbuster Sales

* The Apple trades in this post have been updated. To read the Apple update click here.

AFTER HOURS ACTION: APPLE

After hours, Apple reported sales that blew past expectations; jumping well over 15 billion – that compares to slightly more than $10 billion in the prior year.

Earnings also beat the Street; coming in at $2.08 a share in its fiscal first quarter. Apple earned $1.78 a share in the same period the year before.

But earnings are only part of the story if you’re a trader. The tech titan intends to introduce what it’s calling the “latest creation” at a somewhat clandestine event on Wednesday of this week.

Many Apple watchers expect to see a new tablet computer on the order of Amazon’s Kindle but with widespread gaming capability. Some investors are hoping the new gadget will become as ubiquitous as the iPod.

Although strong earnings and a product launch appear bullish, the company's shares often sell off right after major launches after months of rumor fuel big expectations.

What’s the Apple trade?

Strategy Session with the Fast Money traders
* This post has been updated. To read the update click here.

Lately tech stocks tend to rally off of earnings and then sell-off the next day, adds Guy Adami. Be aware of that.

The Apple trade is all about your view on the broader market, Adami adds. If you think it's going higher, Apple will go higher too. If you think we're at the start of something, then Apple will likely go down faster than the broader market

I would not put more money into Apple ahead of the “latest creation” event concurs Tim Seymour. We’re less than 5% off the highs and the tech market looks a little vulnerable. A lot seems to be baked into this stock.

Apple stock was unchanged on Monday in the after hours, adds Seymour. We don't usually see that. I think it's a bad sign.

Apple’s results make me bullish on tech broadly, counters Joe Terranova. I’m increasing my position in Qualcomm , VMWare, Microsoft and more.

SanDisk may be a beneficiary from the new tablet, adds Mike Khouw of Cantor Fitzgerald.

With Apple's focus on China and other emerging markets, I’d look at playing the build out with names such asLucent and Nokia, says Jon Najarian.

Elsewhere in the sector I’m watching RIM, Adami adds. It looks to me like it wants to drop, further.

> For complete coverage of Apple earnings click here

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AFTER HOURS ACTION: VMWARE

After hours Monday VMware posted quarterly profit above Wall Street expectations, sending its shares soaring 18.6 percent, saying an improving global economy helped boost sales of its business software.

The company, which makes virtualization software that improves the efficiency of computers, reported profit of 31 cents per share in its fourth quarter ended Dec. 31, beating the average analyst forecast of 26 cents, according to Thomson Reuters I/B/E/S.

What’s the trade?

This should bode well for EMC on Tuesday, says Joe Terranova. And in this space I like Qualcomm , too.

NTAP, Seagate and Western Digital are all names in the space that I like, adds Guy Adami.

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BEN BACK?

The S&P snapped a three-day slide on Monday as signs that Federal Reserve Chairman Ben Bernanke would win a U.S. Senate vote.

The developments relieved the market of an element of uncertainty that contributed to recent declines.

What’s the bank trade?

I’m still long BofA , says Karen Finerman.

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TOPPING THE TAPE: COMMODITIES

Commodities moved higher on Monday largely due to dollar weakness; the greenback slipped against the euro and a basket of currencies.

How should you be trading?

In commodities I’m bullish on 3M, says Joe Terranova. I think it goes above $90.

I’d want to be in BP, ConocoPhillips , adds Tim Seymour. Or look at refiners, he adds. Sunoco and Tesoro both look like they're at the bottom of their range.



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Trader disclosure: On January 25th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (FXI), (INTC), (PBR), (X), (TSO), (VIP); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm And Finerman Own (FLS); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO), (UNG); Finerman's Firm Owns S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (MSFT); Finerman's Firm And Finerman Own (WFC) Preferred; Terranova Is Short (CMA), (ESS), (CAL); Terranova Owns (QCOM), (MSFT), (DELL), (AAPL), (EMC), (FCX), (MMM), (XOM), (BAC), (JPM); Terranova Owns March Copper 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 Jon Najarian
Jon Najarian Owns (VMW)
Jon Najarian Owns (AAPL), (AAPL) Collar

For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (SNDK)
Cantor Fitzgerald & Co. Is A Market Maker In (JAVA)
Cantor Fitzgerald & Co. Is A Market Maker In (ORCL)
Cantor Fitzgerald & Co. Is A Market Maker In (MSFT)
Cantor Fitzgerald & Co. Is A Market Maker In (AAPL)
Cantor Fitzgerald & Co. Is A Market Maker In (EMC)
Cantor Fitzgerald & Co. Is A Market Maker In (TXN)
Cantor Fitzgerald & Co. Is A Market Maker In (INTC)
Cantor Fitzgerald & Co. Is A Market Maker In (CSCO)
Cantor Fitzgerald & Co. Is A Market Maker In (QCOM)
Cantor Fitzgerald & Co. Is A Market Maker In (KLAC)
Cantor Fitzgerald & Co. Is A Market Maker In (AMAT)

Other relevant disclosures:
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (YHOO)
Pete Najarian Owned (AAPL), (AAPL) Collar Today



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