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Devil’s Low of 666 Doubles; Credit Crisis Exorcised?

The S&P has now officially doubled from the credit crisis low of 666, otherwise known as the Devil's Low.

Is this a sign the worst is behind us? Or is a correction still coming?

Instant Insights with the Fast Money traders

Guy Adami cautions skeptics not to stand in the way of this market. He thinks the S&P is heading to 1350. “From there we’ll see,” he says. “But the market has had every reason to sell-off and it hasn’t done it. There’s no reason to think it will sell-off now.” That’s not to say there won’t ever be a correction. “It could come at 1500,” he says. “But for the time being enjoy the ride.”

Zach Karabell thinks fundamentals bode well for the bulls. “In 2010 (and earlier in the decade) we had been seeing outflows from equity funds into emerging markets or bonds. But that trend has reversed. There’s a huge amount of money that’s being re-allocated into the US market. If that continues, the rally continues,” he says.

Anthony Scaramucci is also bullish “This market looks a lot like 1995,” he explains. In other words three major factors that propelled stocks then are again in play.

“One is valuation, two is positive balance sheet fundamentals for large caps and three is that we’re in the 3rd year of a presidential cycle and that typically bodes well for stocks. I’m not saying we won’t see a near term correction but the fundamentals are quite strong.”

Even if you think the market will pullback soon, Joe Terranova says stay with the hard trade and stay long. "The market just shakes off bad economic data and February is historically a weak month and look at the action.”

Karen Finerman counsels investors to look at mega-caps. “Like an IBM,” she says. “That stock has a lot of room to run.”

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AFTER HOURS ACTION: NVIDIA

Shares of Nvidia slipped in extended trade after the chip designer posted fourth-quarter revenue below expectations although they did say revenue would increase 6 to 8 percent sequentially in the current quarter, when sales of its new Tegra 2 mobile chips are expected to ramp up.

By the numbers Nvidia said revenue for the fiscal fourth quarter was $886 million, down 9.8 percent from the year-ago period. Analysts on average had expected fourth-quarter sales of $892 million, according to Thomson Reuters.

What’s the trade?

I think Nvidia may be where money goes to sleep, says Jon Najarian, at least for a while.

Given the run the stock has had I think the shorts pile on, speculates Guy Adami. But around $21 or $22, I’m a buyer, he says.




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Trader disclosure: On Feb 16, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova Owns (VRTS); Terranova Owns (C); Terranova Owns (SLXP); Terranova owns (BAX); Terranova owns (TEVA); Terranova Owns (UPL); Terranova Owns (GM); Terranova Owns (APA); Terranova Owns (CVI); Terranova Owns (SU); Terranova Owns (CNQ); Terranova owns (MS); Terranova owns (CME) puts; 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); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's Firm Is Long S&P Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm Owns (BAC) Leap, Finerman Owns (BAC); Finerman's Firm Owns (BBY); Finerman's Firm And Finerman Own (BP); Finerman Owns (C); Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (IBM); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM); Finerman's Firm Owns (M); Finerman's Firm And Finerman Own (MSFT); Finerman's Firm Owns (TGT); Finerman's Firm Owns (WMT); Finerman and Finerman's Firm Own (DAI); Jon Najarian owns (AAPL), is short (AAPL) calls; Jon Najarian owns (AMD), is short (AMD) calls; Jon Najarian owns (BP), is short (BP) calls; Jon Najarian owns (CBOE), is short (CBOE) calls; Jon Najarian owns (CME), is short (CME) calls; Jon Najarian owns (DE), is short (DE) calls; Jon Najarian owns (DELL), is short (DELL) calls; Jon Najarian owns (DG), is short (DG) calls; Jon Najarian owns (HPQ), is short (HPQ) calls; Jon Najarian owns (JDSU), is short (JDSU) calls; Jon Najarian owns (M), is short (M) calls; Jon Najarian owns (NDAQ), is short (NDAQ) calls; Jon Najarian owns (NYX), is short (NYX) calls; Jon Najarian owns (RIMM), is short (RIMM) calls; Jon Najarian owns (JNPR), is short (JNPR) calls; Jon Najarian owns (AET), is short (AET) calls; Jon Najarian owns (AKAM), is short (AKAM) calls; Jon Najarian owns (BX), is short (BX) calls; Jon Najarian owns (RAX), is short (RAX) calls; Jon Najarian owns (SVU), is short (SVU) calls; Jon Najarian owns (SWY), is short (SWY) calls; Jon Najarian owns (X), is short (X) calls; Jon Najarian owns (WMT), is short (WMT) calls; Karabell owns (AAPL); Karabell and River Twice Capital own (BRCM); Karabell owns (C); Karabell and River Twice Capital own (CSCO); Karabell owns (FCX); Karabell owns (GOOG); Karabell and River Twice Capital own (IBM); Karabell owns (RIMM); Karabell and River Twice Capital own (GS); Karabell owns (GE)


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)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
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 (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)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (DPUKF)

For Zachary Karabell
River Twice Capital owns (MSFT)
River Twice Capital Owns (QCOM)
River Twice Capital is short (SPY)
River Twice Capital is short (SMH)
River Twice Capital is short (QQQQ)
River Twice Capital is short (MA) puts
River Twice Capital Owns (LOGM)

For Brian Kelly
No disclosures on (FCX)

For Dennis Gartman SOT
Funds Managed By Dennis Gartman were long crude on 2/16/2011

For Mark Montagna
Montagna has no disclosures

For Rich Ilczyszyn
Ilczyszyn has no disclosures

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

For Mike Khouw
No disclosures on (HD)

For Guy Adami SOT
No disclosure for Adami on (HD)

For Karen Finerman SOT
Finerman's firm owned (DAI) on 12/9/2010

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