Europe Cracking, Dragging Down US?

The S&P fell on Wednesday after a downgrade of Portugal's credit rating brought the rally here in the US to a screeching halt.

Specifically, Fitch lowered Portugal's rating by one notch to AA-minus; the move quickly amplified problems in the euro zone, where diplomats have still not agreed on a safety net for Greece.

"This raises further concerns about other countries in the area and the markets are haunted by the lack of clarity on how Europe will deal with the issues," says Todger Anderson, president of Westcore Funds.

The renewed concerns about sovereign debt triggered a flight to quality, bolstering the dollar and hurting commodity-related stocks .

How should you be positioned now?

Although I think the broad market index continues higher I also expect the euro to continue to break lower, says Joe Terranova. I’m playing oil from the short side and I’m long GLD puts.

With a big holiday coming in Greece, it wouldn’t surprise me that by Friday we hear some pretty nasty news, muses Guy Adami. I'm just speculating but officials always like to deliver bad news right before a holiday.

We’ve known about the issues in Europe for quite some time, counters Pete Najarian. I expect the market will shake-off the news and the broad index marches higher.

I think the euro is in trouble, says Dennis Gartman. Patterns in the charts suggest to me it will go much lower; in fact I expect it could go to 115. But just because the euro is under duress, that doesn’t necessarily mean US investors should sell US stocks.

I like the US market action, says Gary Kaminsky. Don’t forget we priced 3 IPOs and they all traded strongly.

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TOPPING THE TAPE: IPOS!

Wall Street is buzzing about a trio of IPOs that all made impressive debuts. Take a look.

MaxLinear (MXL) Up 35%
Calix Networks (CALX) Up 24%
First Interstate BancSystem (FIBK) Up 12%

What must you know?

The First Interstate BancSystem IPO gives me confidence that the banking system is coming back, says Joe Terranova.

I’d put FIBK on the radar, says Guy Adami. I’m a buyer on a pullback.

I’m jazzed about MaxLinear, says Pete Najarian. It’s a stock I plan to investigate.

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EAR TO THE WALL: GM, Citi

Veteran trader Gary Kaminsky keeps his ear to the wall and lately he’s been hearing some chatter aboutGM and Citi .

What must you know?

I’m hearing Toyota troubles and the fact that GM is doing better will probably move up the timetable for GM’s offering, explains Kaminksy. I think we see GM become a public company again before July 4^th.

And in the case of Citi I’m hearing we’re pushed out a month, says Kaminksy. Although the lock-up is over I’m hearing the government isn’t selling imminently.

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TOPPING THE TAPE: FINANCIALS

Pete Najarian has spotted unusual options action in Bank of America.

The volume of April 19 and April 20 calls traded suggests to Najarian that this stock could make a sharp move higher.

In financials I’m watching Genworth, says Guy Adami. I’m a buyer on a pullback.

I like mortgage insurers such as PMI, counsels Joe Terranova

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Trader disclosure: On March 24th, 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); Najarian Owns (BAC) Calls; Najarian Owns (C) Calls; Najarian Owns (CAT) Calls; Najarian Owns (DVN) Calls; Najarian Owns (F) Calls; Najarian Owns (GE) Calls; Najarian Owns (INTC) Calls; Najarian Owns (MCD) Call Spread; Najarian Owns (MOS) Calls; Najarian Owns (RHT) Call Spread; Najarian Owns (YHOO) Call Spread; Terranova Is Short Crude Oil May Futures; Terranova Is Short (CAL), (UAUA), (GS); Terranova Owns (QCOM), (APA), (AMSC); Terranova Owns (GLD) April Puts; Terranova Owns (GS) Puts; Funds Managed By Dennis Gartman Are Short Euro; Stutland Equities Is A Market Maker In VIX And SPX Options; Stutland Owns (TXN)

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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 (BX)
Kanundrum Capital Owns (EVR)
Kanundrum Capital is Short (EURUSD)

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