Date updated:04-23-2008
On a day like Friday it's easy to get carried away with the market's big move. Should you trade the momentum or focus on fundamentals? I think the market is getting a little carried away, replies Karen Finerman. I have no idea where the market is going short term and I try not to focus on it. Instead I ask myself what stocks are attractively priced with a balance sheet that can withstand some pain if we are in a recession. That’s what I focus on.

-
NYX
Nyse Euronext - $39.57
- +3.42%
- $38.29
You can take a look at the NYSE (NYX). I think it’s attractively priced on an EPS basis and they have good volume.

-
PZN
Pzena Inv Mgmt Cl - $8.82
- +0.23%
- $8.90
Another bet I like is Pzena Investment Management (PZN). It’s an asset management firm that’s run by Rich Pzena who I consider a very smart guy.

-
FNM
Fannie Mae - $6.48
- +15.30%
- $6.17
And if you want, consider Fannie Mae (FNM)but be in it in call options so you know exactly where your downside is.

-
COF
Capital One Finan - $42.59
- +1.82%
- $41.77
On the other side, I think you can short Capital One (COF). I expect more consumer pain to come in things like auto loans and credit cards.

-
WMT
Wal Mart Stores - $59.29
- +0.49%
- $58.99
Also I recommend taking profits in Wal-Mart (WMT) if you own it.
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