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Energizer Market, It Keeps Going and Going

The S&P closed out Friday’s session in positive territory, giving the bulls their second straight week of gains.

Friday’s advance was something of a relief rally after Egyptian President Hosni Mubarak resigned, easing tension around the Middle East for now.

"If things deteriorated in Egypt that would have created a risk for U.S. markets, especially if the Suez Canal was closed," says James Gaul, portfolio manager at Boston Advisors in a Reuters interview. "We've removed a short-term uncertainty and are seeing a positive reaction as a result."

For the week, the Dow was up 1.5 percent and both the S&P and Nasdaq were up 1.4 percent.

Does the rally have legs? How should you position now?

Instant Insights with the Fast Money traders

Joe Terranova suggests focussing “on the performance of small caps , consumer discretionary and the Vix . “ The positive action in the Russell and the XLY and the decline in the fear index suggest to him that investors are willing to embrace risk. That leaves Terranova feeling bullish.

Stephen Weiss, author of The Billion Dollar Mistake also sees lots more upside in the market. However he cautions that "the rally belongs to growth and momentum stocks not necessarily value names," he says.

Brian Kelly agrees that “market action will probably embolden the bulls,” and also says the march higher probably has legs. However, he raises at least a note of caution. He wonders if events in Egypt are similar to the collapse of Bear Stearns. In other words, is it a precursor of greater trouble to come?

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CISCO

Looking at individual names, Guy Adami was watching the action in Cisco on Friday which closed lower. The decline comes after the stock experienced a 14% sell off on the back of its disappointing earnings.

What should you make of it?

At current levels Tim Seymour is a buyer. "The margins in their industry may be coming down but I don’t think the stock is broken by any means," he says.

Guy Adami agrees that Cisco may be ripe for a trade, but he wouldn't pull the trigger just yet. "It feels like there’s more room on the downside," he says. "If you’re looking for an entry point I think the stock could trade down to $18." And if you're looking for other ideas Adami also says, "I think investors have to have Juniper on their radar."


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TOPPING THE TAPE: SOFT COMMODITIES, FERTS

The fertilizer trade continued to work this week with Agrium and Mosaic both hitting fresh highs.

What’s the trade?

I still think investors can get into Monsanto , says Brian Kelly. It’s up a lot but I think there’s still room.

I like Deere , says Guy Adami. I think it could go to $100.

Or look at Syngenta, says Tim Seymour.



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Trader disclosure: On Feb 11, 2011, 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); Seymour owns (BAC); Seymour owns (F); Seymour owns (INTC); Seymour owns (QLGC); Seymour And Segem Asset Management Own (TTM); Weiss owns (FAS); Weiss owns (JPM); Weiss owns (IPI); Weiss owns (AGU); Weiss owns (AAPL); Weiss owns (QCOM); Weiss owns (MSFT); Weiss owns (CSCO); Weiss owns (HK); Weiss owns (DVN); Weiss owns (COP); Weiss owns (SMCI); Weiss owns (PZN); Weiss owns (VZ); Weiss owns (MRK); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Adami's wife works for (MRK); Terranova owns (VRTS); Terranova owns (C); Terranova owns (UPL); Terranova owns (GM); Terranova owns (PEP); Terranova owns (APA); Terranova owns (CVI); Terranova owns (SU); Terranova owns (CNQ)

For Brian Kelly
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Accounts Managed By Kanundrum Capital Own (BAC)
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Accounts Managed By Kanundrum Capital Own (INTC)
Accounts Managed By Kanundrum Capital Own (MCP)
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Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (AMD)
Accounts Managed By Kanundrum Capital Own USD
Accounts Managed By Kanundrum Capital Own (EBAY)
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Accounts Managed By Kanundrum Capital Are Short The Yen
Accounts Managed By Kanundrum Capital Are Short The Australian Dollar
Accounts Managed By Kanundrum Capital Own (AMD)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
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Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
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Virtus Investment Partners Owns More Than 1% Of (NRCI)
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Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
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Virtus Investment Partners Owns More Than 1% Of (DPUKF)

For Doug Kass
Kass has no disclosures

For Anthony Scaramucci
SkyBridge Capital is a fund of funds manager. Funds held may or may not own the recommended securities.

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