Put New Money Into Stocks?

Stocks continued their relentless melt-up on Monday, the first day of trading after Friday's positive jobs report, which showed 162,000 jobs were created in March.

Then, fresh economic data out on Monday added to the bullish sentiment; pending home sales rose unexpectedly and the ISM number jumped to its highest level since May 2006.

However, the session was not without headwinds.

The yield on the benchmark U.S. 10-year Treasury note rose to touch 4 percent mid-day, a level not seen since June 2009. And oil topped $86 a barrel.

It’s also worth noting volume was extremely light, making Monday's session the second-slowest volume day of 2010.

Will rising bond yields and resurgent crude oil put the brakes on the bulls? Or should you put new money into stocks?

Strategy Session with the Fast Money traders?

I would put money to work right here and right now, says Karen Finerman. I don’t make investment decisions based on one or two data points. But a lot of positive data is coming out and, as far as I can tell, it paints a strong mosaic.

April started strong, adds Gary Kaminksy. It seems to me the risk to not own stocks outweighs everything else. I also expect the rally to continue. The only think I think slows the rally is a sharp increase in interest rates.

It seems to me the global economy is also very strong, adds Tim Seymour. Industrial production out of Europe and Japan look good. I think there’s true demand.

However, if there’s a spike in the Treasurys yield, I'll start to get concerned, adds Joe Terranova.

I agree, echoes Jon Najarian, but I think it’s 4 ½ % that would be concerning, not 4% the level yields touched on Monday.

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IS THIS RALLY EXHAUSTED YET?

Meanwhile the traders can’t help but take note of a potentially concerning trend. 90% of stocks are currently trading above their 50-day moving average, according to Bespoke.

Is the market overbought?

I think the fact that we’re above the 50-day means that a lot of stock have put in a floor, says Tim Seymour. I don't interpret that stat as bearish at all.

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TOPPING THE TAPE: OIL

U.S. crude oil futures ended above $86 a barrel, the highest close in 18 months, as the market brimmed with optimism that economic recovery was taking hold.

However some market pundits worry that if oil climbs much more, higher prices at the pump will drag down the consumer – and as a result – the recovery.

How should you be positioned?

I’d trade oil from the long side, counsels Joe Terranova. I’m looking for oil to go higher and higher. Institutional money is driving this trade. However I also think higher oil is going to be the bug-a-boo for the economy.

I agree with Joe – that it’s demand driven, adds Jon Najarian. I don’t put credence in calls that say it’s a fear driven trade.

In the space, I’d be cautious of airlines, says Patty Edwards. And I'd think about shorting the XRT or RTH, she counsels. Higher gas prices could hurt retailers.

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RETAIL SALES THURSDAY

All eyes will be on retail stocks later this week with many stores reporting monthly same-store sales figures on Thursday.

Analysts, on average, are expecting an increase of 6.2 percent in March, with heavily battered teen apparel chains showing some of the biggest improvements.

That would mark the seventh straight month of improving sales, according to Thomson Reuters data.

What’s the trade?

In retail, I like some of the higher end names, says Karen Finerman. I’m bullish Saks .

In this space I’d go short the retail index and long names that you like, counsels Patty Edwards. Personally I like Nordstrom.

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WATCHING APPLE AFTER iPAD RELEASE

Investors are trying to figure out how to game Apple after the tech titan sold more than 300,000 iPads on Saturday, the day the product was released across the country.

“It’s going to be a game changer,” said Steve Jobs, chief executive of Apple, in a statement.

On the news JPMorgan lifted it’s Apple price target to $305 while Thomas Weisel upped it’s target to $280.

Should you get in here?

I think it’s a game changer, says Cannacord Adams analyst Peter Misek. I think Apple probably has 20% on the upside.

I’m long Apple call spreads and I’m bullish Best Buy as a derivative trade, counsels Jon Najarian.

I would not add to my position in Apple with the stock trading at $237, counsels Zach Karabell of the Halftime Report.

In the smartphone space, I'm concerned about Verizon , counsels Gary Kaminksy. I think margins are a problem for this company.

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UNDER THE RADAR CASINO PLAY

Jon Najarian has spotted unusual options action in International Game Tech.

A large number of April 19 and 20 calls traded which suggests to him this stock could make a sharp move higher.

In this space, I'm bullish MPEL, adds Tim Seymour.

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Trader disclosure: On Apr 5, 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 (AA), (AAPL); Finerman's Firm Is Short (IYR), (IWM), (MDY), (SPY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's firm Owns (TJX); Finerman's Firm Owns (WMT), (SKS); Terranova Is Short (SHLD), (EL), (CAL), (UAUA), (FDX); Terranova Is Long May 2010 Crude Oil Futures; Jon Najarian Owns (AKS) Call Spreads; Jon Najarian Owns (STLD) Call Spreads; Jon Najarian Owns (X) Call Spreads; Jon Najarian Owns (NUE) Call Spreads; Jon Najarian Owns (CREE) Call Spreads; Jon Najarian Owns (DF) Call Spreads; Jon Najarian Owns (FCX), Is Short (FCX) Calls; Jon Najarian Owns (AAPL), Is Short (AAPL) Calls; Jon Najarian Owns (RIMM), Is Short (RIMM) Calls; Jon Najarian Owns (AAPL) Call Spreads; Jon Najarian Owns (AKS) Call Spreads; Jon Najarian Owns (FCX), Is Short (FCX) Calls; Jon Najarian Owns (IGT), (IGT) Calls; Jon Najarian Owns (NUE) Call Spreads; Jon Najarian Owns (RS); Jon Najarian Owns (TJX), Is Short (TJX) Calls; Jon Najarian Owns (WMT), Is Short (WMT) Calls; Jon Najarian Is Short (RIMM) Puts; Karabell Owns (FCX), (AAPL), (RIMM), (SLB); Edwards Owns (UUP); Edwards Owns (TM)

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 (XLU)
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 Patty Edwards
Edwards Owns (AAPL) For Clients
Edwards Owns (ANF) For Clients
Edwards Owns (BMY) For Clients
Edwards Owns (BRK.B) For Clients
Edwards Owns (FCX) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (JCG) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (RIMM) For Clients
Edwards Owns (VZ) For Clients
Edwards Owns (YHOO) For Clients
Edwards Owns (WMT) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (SPY) For Clients
Edwards Owns (QQQQ) For Clients
Edwards Owns (PGM) For Clients
Edwards Owns (TM) For Clients
Edwards Owns (BKE) For Clients

For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (IGT)

For Hilary Kramer
A&G Capital Owns (DNDN)
A&G Capital Owns (SPMD)

For Will Landers
BlackRock Latin America A Fund Owns (ITAU)
BlackRock Latin America A Fund Owns Cyrela
BlackRock Latin America A Fund Owns (VALE)
Landers Owns BlackRock Latin America A Fund



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