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Market Wants To Go Higher?

The Dow surged more than 100 points on Thursday cheered by word that European leaders had sealed a deal to provide financial aid to Greece.

However some investors, such as Guy Adami, suggest Thursday’s action was little more than a relief rally considering details of the bailout were few and far between.

They expect stocks could give back gains – and then some – with Greece the tip of the iceberg when it comes to Europe’s financial woes.

How should you be positioned?

Strategy Session with the Fast Money Traders

I’m not surprised by the lack of details in the Greece bailout, says Tim Seymour. I think the EU isn't sure yet what it’s going to be. But no matter what, the long term implications are negative for the euro - either the bailout works and they tighten their belts or it blows up. I’d play it long dollar short euro.

It seems to me the news about Greece was already out there, says Karen Finerman. Perhaps not officially, but it was certainly implied. I would have found it shocking to learn that there was no bailout. I'm not exactly sure why it moved the market except to say the market was looking for a reason to rally.

I think the move by the EU is much like the TARP program here in the US, says Brian Kelly of Kanundrum. In other words, the government isn’t going to allow big banks to fail. I’d play it with long positions in Bank of Greece or the Spain ETF because Banco Santander is a big component.

Look at low beta plays such as Alcoa, counsels Joe Terranova. I don’t want to have to worry about moves in the euro playing havoc with my trades.

Although I think we’re still looking at a correction longer term over the next few days I'd play it for a bounce, says Guy Adami. If you’re looking for a trade, I’d look at CSX at these levels with a tight stop, says Guy Adami.

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TOPPING THE TAPE: NICE TRADE: COMMODITIES

On Thursday, the best trade of the day may have been in commodities, with metals and grains shaking off early strength in the dollar.

Is this a trade or the end of the downturn?

I can’t feel bullish about FCX unless it closes above $75.50, says Guy Adami.

I believe the ag trade is coming back, adds Joe Terranova. I’m watching Potash and other names in the space.

India is short on potash supplies, adds Tim Seymour. I’d also look at the fertilizer names. Whether we’re oversold or in the next leg higher I think over the next few weeks there’s room in the space to go higher.

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TOPPING THE TAPE: NICE TRADE: TECHNOLOGY STOCKS

Tech, the worst performing group of 2010 so far, was a good trade on Thursday as investors bet Intel would still make gains from the PC upgrade cycle.

Also, chip stocks jumped after Roth Capital upgraded Nvidia from “hold” to “buy” with a price target of $21 – again citing a recovery in the PC business.

What’s the tech trade?

I’m watching Intel , counsels Guy Adami. The stock bounced off $18.95. Also it’s worth noting that Amazon traded down to $113.82 – that would be my point of reference in that stock. I’m also bullish Hewlett-Packard .

I’m watching RIM, adds Joe Terranova. If we’re seeing a correction tech should come back first and I’d trade it with this stock.

Do patterns in the charts confirm or deny the rally? Find out from Scott Redler of T3. Watch the video above.

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TOPPING THE TAPE: HOMEBUILDERS

Shares of Lennar popped after the company said it completed transactions with the FDIC under which the homebuilder and the independent government agency will resolve about 5,500 distressed real estate loans.

Lennar and the FDIC, which insures bank deposits, will hold equity interests in two portfolios of loans with a combined unpaid balance of $3.05 billion, Miami-based Lennar said. The transactions include about 5,500 distressed residential and commercial real estate loans from 22 failed bank receiverships.

What’s the housing trade?

I’d play it with a long position in Pulte , says Karen Finerman.

I'm bullish Home Depot, says Guy Adami.

I’m bearish, counters Joe Terranova. I think borrowing costs are going to rise and that hinders the housing trade. I’d look to get short.

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FAST FLASH: CATERPILLAR UP 10% IN 3 DAYS

You might say the poster boy for this market bounce has been Caterpillar . Considering the stock is up 10 percent in three days, how should you play it?

I think it rolls over again, says Guy Adami. That's how I'd play it.






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Trader disclosure: On February 11th, 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), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Is Short (IWM), (CAKE), (IJR), (SPY), (MDY), (UNG), Short (USO); Finerman Owns (AAPL); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (PLCE); Finerman's Firm And Finerman Own (WFC) Preferred; Terranova Owns (JPM), (OIH), (AA), (RIMM), (GOOG), (EMC), (AAPL), (DELL), (MSFT)

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 (XLP)
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 Christopher Zook
Zook, His Clients, And His Firm Own (OIH)
Zook, His Clients, And His Firm Are Short (VNQ)

For Scott Redler
Redler Owns (AAPL)
Redler Owns (GOOG)
Redler Owns (SPY)
Redler Owns (RIMM)
Redler Owns (TOL)
Redler Owns (AMZN)

For Brian Kelly
Kanundrum Capital Owns (EWP)
Kanundrum Capital Owns (NBG)
Kanundrum Capital Owns (SYY)
Kanundrum Capital Is Long U.S. Dollar vs. Short Euro
Kanundrum Capital Is Short U.S. Treasury Futures
Kelly Owns (NBG)
Kelly Owns (FXE) Puts

Added Disclosures:
Finerman's Firm Owns (MCD)
Finerman's Firm Owns (JPM)
Finerman's Firm Owns (BAC)
Finerman Owns (BAC) Preferred, (BAC)
Finerman Owns (JPM)
Finerman's Firm Owns (CYB)
Seymour Owns (CTCM)
Seymour Owns (AAPL)
Seymour Owns (BAC)
Seymour Owns (F)
Seymour Owns (INTC)
Seymour Owns (LVS)
Seymour Owns (MGM)
Seygem Asset Management Owns (NBG)
Seygem Asset Management Owns (POT)
Seygem Asset Management Owns (MTL)


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