Bulls pushed the Dow higher on Tuesday after a small than expected decline in existing home sales provided investors with a new reason to buy.
But with the threat of a Wall Street crackdown looming and troubles overseas far from resolved, you can't buy stocks broadly.
That's not to say there aren't plenty of ways to profit right now, you just have know where to look. And the Fast Money traders see opportunity in commodities.
What’s the trade?
I'm bullish iron ore, says Steve Grasso of Stuart Frankel. I think the spot price has room to run. And I'd play it with a long position in Vale but with a tight stop.
I think commodities take the entire market higher, adds Pete Najarian. I’d Look at Cliffs or Walter Energy , he counsels. Both should have room to the upside. For that matter Caterpillar , Bucyrus and Joy Global also probably have more upside. But if you establish a new position at these levels make sure to buy put protection, he counsels.
In the space, I think Freeport McMoRan has room to run, counsels Patty Edwards of Storehouse. And I’m also bullish on the unloved names -- such as Ormat Technologies . This is a company that has just not participated in the rally.
---
CHART OF THE DAY: AET
Patterns in the chart of Aetna suggest to Todd Gordon of Forex.com that this stock may be about to break out.
If the stock can break above $35.30 a triple top, the stock could pop to the upside, he says.
Elsewhere in the space, I’m watching Walgreen and CVS , reveals Patty Edwards. They're likely popping as perceived beneficiaires of health care reform -- but both of these names are very much tethered to the consumer. In fact they make more money off what they sell in the front of the store than the prescriptions sold in the back. I expect some downside.
---
UNDER THE RADAR FORD
The Fast Money traders are closely watching the action in Ford , which is up about 5% in the last 5 days. What’s the trade?
I expect the stock to pause somewhere between $13.50 - $14, says Pete Najarian. But I also think the stock could go to $15 longer term.
Without a $14 close, patterns in the charts suggest to me that Ford trades lower, says Todd Gordon.
---
GOOGLE DAY TWO: BAIDU UPGRADED AT KAUFMAN BROS.
More Wall Street watchers are saying Google’s pain is Baidu’s gain. In a note to clients, Kaufman analytst Aaron Kessler upgraded Baidu to "Buy" from "Hold" and raised his price target to $690 from $540.
He put the odds at 80 percent that China will block Google and in the event that happens, “with approximately 70% query share and over 60% search revenue share, Baidu would be the clear beneficiary.”
Now investors are starting to wonder if this is a new trend. Will other companies follow Google’s lead and pullout of China due to censorship concerns?
I don’t think other companies will follow Google and fall on the sword, speculates Patty Edwards.
---
EAR TO THE WALL: TITANIUM METALS
Pete Najarian has spotted unusual option action in Titanium Metals.
The volume of April 16 calls traded suggests to him this stock could make a sharp move higher.
---
TRADE TO GO: RIMM
I’d put RIM on the radar, counsels Patty Edwards. Charts suggest to me the stock has upside to $80 and fundamentals suggest it could go to $95.
---
CALL THE CLOSE
Pete Najarian: I think commodities lift the market higher.
Patty Edwards: I like JCrew.
Steve Grasso : I’m bullish stocks as long as the S&P holds 1150. I’d buy the dips. Momentum is a friend to the upside.
Todd Gordon: I’m watching FCX below $80.50
______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.
Trader disclosure: On March 23, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (AA) Call Spread; Najarian Owns (AKS) Call Spread; Najarian Owns (CLF) Call Spread; Najarian Owns (TCK); Najarian Owns (TEVA); Najarian Owns (MYL); Najarian Owns (F) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (TIE) Call Spread; Najarian Owns (YHOO) Call Spread; Najarian Owns (BAC) Call Spread; Najarian Owns (C) Calls; Najarian Owns (F) Calls; Najarian Owns (RHT) Calls; Najarian Owns (TIE) Calls; Najarian Owns (YHOO) Call Spread; Terranova Is Short (CAL), (UAUA), (GOOG), (GS); Terranova Owns (QCOM), (APA), (TER), (BEAV), (AMSC); Terranova Owns (GS) Puts; Terranova Is Long Crude Oil May Futures; Cortes Is Short Euro; Grasso Owns (AAPL), (ABK), (ASTM), (BA), (BAC), (BGP), (C), (COST), (CSCO), (PFE), (PRST), (WMT), (JPM), (NEM); Edwards Owns (TM); Edwards Owns (AAPL) For Clients; Edwards Owns (F) For Clients; Edwards Owns (CSCO) For Clients; Edwards Owns (GOOG) For Clients; Edwards Owns (JCG) For Clients; Edwards Owns (INTC) For Clients; Edwards Owns (MSFT) For Clients; Edwards Owns (QQQQ) For Clients; Edwards Owns (RIMM) For Clients; Edwards Owns (SPY) For Clients
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 (EXR)
Virtus Investment Partners Owns More Than 1% Of (GOK)
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 (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLI)
For Brian Kelly
Kanundrum Capital Owns (AAPL)
Kanundrum Capital Owns (CAT)
Kanundrum Capital Owns (DE)
Kanundrum Capital Owns (EVR)
Kanundrum Capital Owns (BX)
Kanundrum Capital Owns (PAG)
Kanundrum Capital Owns (IBM)
Kanundrum Capital Owns (BUCY)
Kanundrum Capital Owns (JOYG)
Kanundrum Capital Owns (SYY)
Kanundrum Capital Owns (MHK)
Kanundrum Capital Owns (SEE)
Kanundrum Capital Owns (PTV)
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short (GS)
Kanundrum Capital Is Short (FCX)
Kanundrum Capital Is Short (AA)
Kanundrum Capital Is Short (ACH)
Kanundrum Capital Is Short (GRMN)
Kanundrum Capital Is Short (SLX)
Kanundrum Capital Is Short (EWH)
Kanundrum Capital Is Short (EWY)
Kanundrum Capital Is Short (FXI)
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Pound
Kanundrum Capital Is Short Swiss Franc
Kanundrum Capital Is Short Copper
Kanundrum Capital Is Short Treasuries
For Steve Grasso
Stuart Frankel & Co. Inc. And Its Partners Are Short (AAPL)
Stuart Frankel & Co. Inc. And Its Partners Own (ABK)
Stuart Frankel & Co. Inc. And Its Partners Own (CUBA)
Stuart Frankel & Co. Inc. And Its Partners Own (GERN)
Stuart Frankel & Co. Inc. And Its Partners Own (GLG)
Stuart Frankel & Co. Inc. And Its Partners Own (HSPO)
Stuart Frankel & Co. Inc. And Its Partners Own (NWS.A)
Stuart Frankel & Co. Inc. And Its Partners Own (NXST)
Stuart Frankel & Co. Inc. And Its Partners Own (NYX)
Stuart Frankel & Co. Inc. And Its Partners Own (PDE)
Stuart Frankel & Co. Inc. And Its Partners Own (PRST)
Stuart Frankel & Co. Inc. And Its Partners Own (RDC)
Stuart Frankel & Co. Inc. And Its Partners Own (TLM)
Stuart Frankel & Co. Inc. And Its Partners Own (TOL)
Stuart Frankel & Co. Inc. And Its Partners Own (XRX)
Stuart Frankel & Co. Inc. And Its Partners Own (SDS)
Stuart Frankel & Co. Inc. And Its Partners Are Short (QQQQ)
Stuart Frankel & Co. Inc. And Its Partners Are Short (CL)
CNBC.com with wires
