By Stockpickr Staff
Posted on June 5, 2009

The traders of CNBC’s “Fast Money” are in the camp that believes momentum is ready to take this market higher, not toward an imminent correction. Joe Terranova thinks the current market action is all about asset allocation and that money is flowing into the market. However, he has also warned investors to be defensive because some of the leaders such as financials, energy and materials are starting to roll over.

Tim Seymour thinks the market is in a nice zone, at least until second-quarter earnings are released. A bearish set of second-quarter earnings could be just the catalyst that sparks a correction in the stock market. Predicting earnings is a difficult game, so the traders are sticking to finding stocks that continue to work in the current environment. The crew is also discovering some great trading opportunities that have specific catalysts to drive certain sectors higher.

The panel recently highlighted trading ideas that play off of General Motors’ (GMGMQ) bankruptcy, stocks to buy off the improving Chinese economy and stocks with cancer breakthroughs. Here are some highlights from over the past week as aggregated from the show.

Fast Money’s Growing Chinese Economy Trades: The traders see opportunity in playing China off their recent better-than-expected PMI data. On Monday’s “Fast Money” show, Tim Seymour told viewers: “I’m keeping a close eye on China’s consumers, they seem to be in much better shape than their American counterparts.” Fast Money’s Growing Chinese Economy Trades include E-House Holdings (EJ) and Giant Interactive Group (GA).

Fast Money’s Bear Rally Stock Picks: Are we entering a new bull market, or is this a bear market rally? The traders have some insight. On Tuesday’s “Fast Money” show, Brian Kelly of Kanundrum Research told viewers: “The current rally is a 'rally in a bear market.' I am still a buyer of retail stocks but on pullbacks.” Fast Money’s Bear Rally Stock Picks include Research In Motion (RIMM) and Plum Creek Timber (PCL).

Fast Money’s Cancer Breakthrough Stocks: The crew thinks it’s time to put cancer stocks on your radar due to the recent partnership between Exelixis (EXEL) and Sanofi-Aventis (SNY). On last Thursday’s “Fast Money” show, CNBC pharmaceuticals reporter Mike Huckman told viewers: “Genomic (GHDX) will introduce a test that may be able to determine the likelihood of colon cancer coming back.” Fast Money’s Cancer Breakthrough Stocks include OSI Pharmaceuticals (OSIP) and Medivation (MDVN).

Fast Money’s Stimulus Plan Winners: What stocks are the big winners now that 100 days have gone by since President Obama passed his stimulus plan in Congress? On last Thursday’s “Fast Money” show, Joe Terranova told viewers: “The global economic stimulus in such countries as China and India is benefiting companies like Freeport McMoRan (FCX).” Fast Money’s Stimulus Plan Winners include Joy Global (JOYG).

Fast Money’s GM Bankruptcy Trades: What companies will emerge as the winners now that General Motors (GM) has filed bankruptcy? On Tuesday’s “Fast Money” show, Guy Adami told viewers: “A possible beneficiary of the GM bankruptcy is BorgWarner (BWA), along with O’Reilly (ORLY).” Fast Money’s GM Bankruptcy Trades include Toyota Motor (TM) and Ford (F).

Fast Money’s Commodities Stock Plays: The commodity space is on fire! Is it time to buy or sell? On Monday’s “Fast Money” show, Karen Finerman told viewers: “Now may be the time to take some money off the table in names like Transocean (RIG) or Anadarko (APDC) who have had big moves of late.” Fast Money’s Commodities Stock Plays include Potash (POT) and Marathon Oil (MRO).