Word On The Street The stock market saw its best gains of 2008 on Wednesday. The Dow closed up 146 points and the NASDAQ finished up 34 points. Guy Adami doesn’t think the market put in a reversal on Wednesday. He thinks the rally was based off of short covering and he recommend defensive play Altria Group Inc. ( MO ). Tim Seymour agrees with Adami that the rally was due to short covering. He thinks talk of the Fed easing is driving the market higher. Pete Najarian advised investors to sell into strength on the financials when you get it. The NASDAQ saw its first up day of 2008 on Wednesday. Adami thinks Microsoft Corporation ( MSFT ) is the best name out there on the NASDAQ and investors should look to buy it with $32 as support. Najarian mentioned that both Microsoft and Oracle Corporation ( ORCL ) looked good when the market was bad. Alcoa Inc. ( AA ) reported a 76% jump in fourth-quarter profits and the stock jumps 4% in after hours trading. Seymour thinks Alcoa is very interesting and could be an acquisition target. Adami likes Alcoa for a trade. Finerman explained that if the talks between Rio Tinto plc ( RTP ) and BHP Billiton Limited ( BHP ) heat up then Alcoa will go up. Najarian says keep an eye Delta Air lines Inc. ( DAL ) for a possible takeover play. Goldman Sachs Group Inc. ( GS ) is forecasting a recession in 2008. As part of that forecast Goldman is advising clients to buy healthcare, gold stocks, and defensive names like Altria Group and McDonald’s Corporation ( MCD ) -- and they’re negative on media, auto and chemical stocks. Adami favors Pfizer Inc. ( PFE ) and Johnson & Johnson ( JNJ ). Najarian likes Novartis AG ( NVS ) which trades at P/E of 10. Finerman wondered if the run in Altria Group is close to being over. Dubai World and MGM MIRAGE ( MGM ) announced they will launch a cash tender off to repurchase up to 10 million MGM shares for $75-$80 each. Adami says 10 million shares isn’t a big deal but Kirk Kerkorian owns 52% of MGM. He thinks something is going on at MGM and it’s worth a look. Najarian says be careful with the casino sector. Seymour mentioned that Jefferies upgraded the entire sector Wednesday. Emerging markets like iShares MSCI Brazil Index Fund ( EWZ ) and iShares FTSE/Xinhua China 25 Index Fund ( FXI ) put in a strong performance Wednesday. Adami says if you bought China Mobile Limited ( CHL ) raise your stop to $85. Najarian says keep an eye on The Andersons Inc. ( ANDE ) and Archer-Daniels-Midland Company ( ADM ) . Najarian noticed unusual options activity in American International Group Inc. ( AIG ) with action in the February $45 puts and he also saw heavy activity in the February $30 puts for Johnson Controls Inc. ( JCI ). Retail Trade Wall Street is expecting retailers to report weak December sales on Thursday. What is the trade? Finerman is comfortable being long Wal-Mart Stores Inc. ( WMT ) and she feels that expectations are very low for the giant retailer. She thinks the trend in purchasing gift cards will shift revenue to be recognized in the first-quarter for Wal-Mart. Adami recommends looking at Saks Incorporated ( SKS ) which has a huge short interest. Najarian likes GameStop Corp. ( GME ) which will be issuing guidance on Thursday. Commercial Real Estate Trade Commercial real estate stocks are under heavy selling pressure as investor’s fear that the weakness in residential housing is spilling over to the commercial end. Is it time to short the iShares Dow Jones U.S. Real Estate Index Fund ( IYR ) ? Finerman thinks the IYR has more room to go on the downside. She disclosed that she is currently short the IYR, Simon Property Group Inc. ( SPG ) and Taubman Centers Inc. ( TCO ) for a hedge against her real estate long positions. Adami says take a look at Acuity Brands Inc. ( AYI ) which has a big short interest for a long trade. Commodity Trade Joe Terranova, Director of Trading at MBF Clearing Corp joined the “Fast Money” crew to discuss his take commodities markets. Terranova thinks natural gas and sugar will put in a strong performance in 2008. He doesn’t like playing the ETF for natural gas. He would rather be long Williams Companies Inc. ( WMB ), El Paso Corporation ( EP ) and San Juan Basin Royalty Trust ( SJT ) . Adami mentioned his favorite play on natural gas is Apache Corporation ( APA ) and Najarian agreed. Terranova thinks that the net Chinese exports for sugar will soar over the next decade. He recommends playing sugar with future contracts because there’s currently no ETF or equity that is a pure way to play it. Tech Trade The NASDAQ hasn’t started off 2008 in good fashion. Many of the leading tech stocks like Apple Inc. ( NASDAQ: AAPL ), Google Inc. ( NASDAQ: GOOG ) and Research In Motion Limited ( RIMM ) are all down more than 9%. The “Fast Money” traders turned to famous technology blogger Robert Scoble, who runs Scobleizer.com, for some answers on technology. Scoble mentioned that he saw a Sony TV that was thinner than his cellphone at CES. He also says the guys who founded YouTube were looking at the Panasonic 150 inch flat screen TV that sells for $150,000 and the Nokia Corporation ( NOK ) booth was packed. Adami thinks Corning Incorporated ( GLW ) could be worth a look for a play on flat panel TV’s. Scoble explained the trends in technology for 2008 are mobile devices and big TV’s. POPS&DROPS POPS- DuPont ( DD ) traded up 5% after the chemical giant raised its 2008 forecast. Adami thinks DD is an interesting play at 13 times earnings. Aluminum Corp. of China Ltd. ( ACH ) traded up 8% as emerging market stocks were on fire Wednesday. Seymour says a lot of Western hedge funds are playing ACH off the anticipation the shares will be listed in Shanghai. The Mosaic Company ( MOS ) traded up 1%. Najarian says be careful in this name. Sony Corporation ( SNE ) traded up 6% after Warner Brothers announced it’s committing to Sony’s Blu-Ray high definition DVD format. Adami thinks SNE is worth watching. V.F. Corporation ( VFC ) traded up 8% after the clothing company said it would hit $11 billion in revenue in 5 years. Finerman was impressed. DROPS- Washington Mutual Inc. ( WM ) fell 3% as investors fear more write-downs from the savings and loan giant. Finerman says that’s a pop for WM. Alliant Techsystems Inc. ( ATK ) fell 4% after making a large acquisition. Seymour thinks the acquisition added way too much debt to their balance sheet. Starbucks Corporation ( SBUX ) fell 2%. Najarian would rather be in MacDonald’s. Saks Incorporated ( SKS ) fell 1%. Finerman disclosed she is long SKS for a long term play. General Motors Corporation ( GM ) fell 2% after Goldman Sachs cut their price target to $25 from $31. Adami says sarcastically great job JPMorgan. Amazon.com Inc. ( AMZN ) fell 3%. Najarian explained the drop is just profit taking after a huge run in 2007. Wimm-Bill-Dann Foods ( WBD ) fell 4%. Final Trade Seymour favors Titanium Metals Corporation ( TIE ) . Adami likes NYSE Euronext ( NYX ). Finerman recommends buying American Eagle Outfitters Inc. ( AEO ). Najarian picked Alexander & Baldwin Inc. ( ALEX ) for a play on shipping and sugar.