Fast Money Recap 3/17/08: Where is the Bottom?

Recap of Fast Money, Monday March 17. Click on a stock ticker for more analysis.

Bear Stearns (BSC), JP Morgan (JPM), Johnson & Johnson (JNJ), Merck (MRK), Goldman Sachs (GS), Lehman Brother (LEH), U.S. Bancorp (USB), Mastercard (MA)

Jeff Macke said Monday was an historic day, not just on the news of JPM's bargain buyout of Bear, but because the markets recovered. Najarian said the 36% volatility on the VIX was the sign he was looking for and likes JNJ and MRK. Terranova says he may be bullish on the market if the Visa's IPO and GS earnings are bullish. Adami says he is concerned about a $3 writedown GS has in relation to a Chinese industrial bank. Macke said if technicals were the only issue LEH would be better, but GS is superior on a fundamental basis, and would be long GS. Adami said USB has little exposure to subprime. Macke would close short positions on LEH and declare victory, since the bank has already declined 50%. Concerning Visa's IPO, Adami would wait and see how it behaves before buying, but adds he is bearish on MA.

Commodities and Energy: Apache (APA), XTO Energy (XTO), U.S. Oil Trust (USO), Streetracks Gold (GLD), Tesoro (TSO), Valero (VLO)

Adami discussed natural gas picks APA and XTO. Macke likes USO and GLD for the long-term. Terranova believes commodities will be the story for the end of the year, and those who want to buy TSO and VLO should buy puts for protection.

Dennis Gartman, The Gartman Letter

Dennis Gartman sees a fall for commodities and Terranova added it is a better idea to invest in companies that produce and export commodities than companies that have use commodities as raw materials. Gartman says he believes financials have bottomed and praised JPM CEO Jamie Dimon for the shrewd Bear acquisition. He bought shares of JPM.

Burlington Northern Santa Fe (BNI), Union Pacific (UNP), CSX (CSX)

Najarian doesn't see the options action in BNI as having been negative, and says the longs were protecting themselves. Adami likes BNI and says CSX rose.

Zach Karabell, Executive Vice-President and Chief Economist for Fred Alger Management and the Spectra Funds with stocks Fannie Mae (FNM) and Freddie Mac (FRE)

Zach Karabell predicted the current economic crisis would last another year. Macke said the bottom will look like absolute disaster and believes the Fed will see another bank fall. Najarian said FNM and FRE may be affected by news that the government may ease capital constraints.

William Fleckenstein, author of Greenspan's Bubbles

Fleckenstein said the recession is only just beginning, and the government is not getting at the source of the crisis. Najarian said bottom-fishers should buy puts to protect themselves. Terranova is still not so worried about LEH, and Adami said while the long-term forecast is bearish, the market could rise 800 points in a month.

Trader Radar: Johnson & Johnson traded at more than double its average daily trading volume Monday.

Carter Worth, Chief Market Technician at Oppenheimer with IBM (IBM) and Apple (AAPL)

Carter Worth says the bulls will have to wait a while for a run and outlined the signs of capitulation: consistent weakness, a new low, a bullish close, and explosive volume. He only sees weakness in the current climate and doesn't think a rally is coming soon. He added the S&P dipped only a bit below January's low, and thinks the market has further to fall, especially given the bullishness. Najarian said he was interested in the price action in IBM and AAPL and Worth agreed with him about IBM but not about Apple.

Suze Orman

Suze Orman said the ordinary investor is panicked and is not paying attention to what is going on in their 401(k) plans and IRAs. She emphasized the importance of taking the long-term view and staying diversified.

Final Trades: Macke: Lehman Brothers (LEH), Adami: Apple (AAPL), Terranova: Valero (VLO), Najarian: Tesoro (TSO)

Seeking Alpha is not affiliated with CNBC, or Fast Money

Comments

[franky]

how can a 17 billion dollar a year company go broke?

[Amidwesternneighbor]

um...17 billion in, 18 billion out? that's how.