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Recap of CNBC's Fast Money, Tuesday October 21.

The Mood of the Markets

Dylan Ratigan started the show with a discussion of the sell-off in the stock market today. Pete Najarian explained that everything that worked Monday didn’t work today. He said it was interesting that the volatility index pulled back late in the day. Jeff Macke said he was shocked to hear that people were buying back into the global growth story. He said he shorted the global growth names through the S&P 500 at the open. Ratigan brought up the improvement in the credit markets for the third consecutive day. Karen Finerman says "three days in this market is a huge trend." Guy Adami said the credit markets should improve each day. Macke says "we will know that the credit markets are getting better by themselves when traders take the credit spread off their screens, and when Ben Bernanke stops talking on TV."

Earnings Moves - Apple (NASDAQ:AAPL), Yahoo! (NASDAQ:YHOO), VMware (NYSE:VMW), EMC (NYSE:EMC), Caterpillar (NYSE:CAT), DuPont (NYSE:DD) and 3M (NYSE:MMM)

Ratigan mentioned that Apple and Yahoo! reported earnings after hours. He said Apple was ahead of expectations but the guidance was lousy. Najarian said he was impressed with Apple's record Mac sales. Adami said look for a 100-million-share day to signal a capitulation bottom for a trading opportunity. Najarian said VMware reported great numbers tonight and said investors should watch EMC tomorrow. Ratigan moved the discussion to the weak numbers reported by big industrial names such as Caterpillar, DuPont and 3M. Adami said he would rather buy Caterpillar and sell 3M at current valuations.

Gas Plays - McDonald's (NYSE:MCD), Continental Airlines (CAL)

The traders talked about the continued drop in crude oil prices. Adami said the bigger story is sharp fall in gasoline prices. Macke said he bought some McDonald's on the basis of the falling price of gas. Najarian pointed out that Continental Airlines is the most levered to the price of oil right now. He says "if you're looking for a play with or against oil, look at Continental Airlines."

Goldman Sachs Downgrade – Citigroup (NYSE:C)

Ratigan moved on to the news that Goldman Sachs reiterated its sell call on Citigroup because of its tangible book value. Finerman told viewers to stay away from Citigroup. Macke says, "Are you kidding me with how late this downgrade is?" Adami explained that Goldman hasn't been on fire with its ratings calls lately. He says, "They have been downgrading things on the lows and upgrading things on the highs."

Drug Names Sensational - Pfizer (NYSE:PFE), Genentech (DNA)

Ratigan said the drug names continue to be sensational. Najarian pointed out that Pfizer had a strong day today and investors should keep an eye on it. He says "Genentech is still the one to watch for the Roche story."

Potential Bank Takeovers - National City (NCC), KeyCorp (NYSE:KEY), Comerica (NYSE:CMA), First Horizon (NYSE:FHN)

CNBC's Steve Liesman came to discuss whether a bank takeover is coming that will be funded by the American taxpayer. He said the Treasury is going to use some of the bailout plan money to recapitalize the good banks so they can buy the weak banks. He said potential "weak bank" targets could be National City, KeyCorp, Comerica and First Horizon. Liesman said six of the strong banks have said they will use the capital to make acquisitions. He says "I am not sure how to pick winners or losers here." He told viewers it might be a better idea to get into the better banks' preferred shares.

Whale Watching - Ford Motor (NYSE:F), MGM Mirage (NYSE:MGM)

The crew debated whether it's a wise move to follow Kirk Kerkorian into casino stocks. Kerkorian announced that he's going to dump his stake in Ford Motor and get away from autos and focus on gambling and energy plays. Najarian said he likes the concept of where Kerkorian is going. Adami says "MGM Mirage is now a valuation play, and the stock has a huge short interest." However, he said investors shouldn't look at the gaming sector on the basis of Kerkorian's moves. Macke says "its way to early on the casino names and way to early on the autos." Finerman said she doesn't understand why Kerkorian always tells the market what he's planning to do with his stock positions. Najarian said MGM is too cheap, and he said he bought some the other day.

Trader Radar- Shares of Netflix (NASDAQ:NFLX)

Shares of Netflix were among the most actively traded stocks on the Nasdaq Tuesday.

Your First Move for Wednesday, October 22nd.

Jeff Macke prefers McDonald’s (MCD).
Karen Finerman likes the Retail HOLDRs ETF (NYSEARCA:RTH).
Guy Adami recommended Intel (NASDAQ:INTC).
Pete Najarian said he loves Burlington Northern Santa Fe (BNI).

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Source: Credit Market Trend - Fast Money Recap (10/21/08)