Halftime Report: Will Weak Consumer Draw Out Bears?
Instant Insights with the Fast Money traders

I don’t think the action in the S&P 500 is simple profit taking, speculates Joe Terranova. I think we’re seeing a change in momentum.



I agree that this is a sea change, echoes Guy Adami. I think the consumer is in trouble. The trade going forward is short the specialty retailers that are over priced. And broadly I think the market is heading lower.



All those buy orders from last week have dried up; they may have been nothing more than a melt-up into expiration, muses Gary Kaminsky. I agree that we’re heading lower.

I’m actually impressed that the market is doing as well as it is, counters Pete Najarian. Considering how bad the consumer confidence report was, I would think the market would be down a lot more.

And if you’re looking for a trade, I’d look at RadioShack , adds Najarian. It’s an opportunity on the pullback.

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FITCH DOWNGRADES GREEK BANKS

The Greek tragedy that has gripped Wall Street began its a second act on Tuesday after Fitch downgraded four of Greece's largest banks.

What’s the trade?

I’m short the European markets because I believe the economic climate continues to deteriorate, says Gary Kaminksy, and I’m playing it with the EPV .

I agree, says Guy Adami. I think it gets worse before it gets better.



For a down stream trade, I’d be a buyer of Canadian debt or German debt, says Joe Terranova. It’s being sold off because of Greece.

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MARKET BUZZKILL: STRONG DOLLAR CRUSHES COPPER

A greenback rally left commodity stocks in the red on Tuesday with the rising dollar hitting copper particularly hard.

What’s the trade?



I was wrong about copper, admits Joe Terranova. I thought when China came back from holiday the re-stocking process would resume, but over the last two days I’ve seen nothing but selling.

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CHART OF THE DAY: FINANCIALS

Turning to the chart of the day – financials were trading lower around lunchtime – that is except for Goldman Sachs.



Goldman stock is making a nice run at that key technical level of $160 -- but fighting a downtrend as the 50-day crosses below the 200-day moving average.



What’s going on?

I think the move higher was generated by closet indexers who must be in financials, says Gary Kaminksy. With all the problems in Europe they don’t want to be in European banks so I think they take a long position in Goldman because it’s less likely to surprise.

I think the move in Goldman is short-covering, counters Joe Terranova. Nothing more.



If you’re in Goldman stock, I’d take profits on the bounce, adds Guy Adami, especially if you believe the stock market is heading lower.



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EAR TO THE WALL: PALM



Two big downgrades hammered shares of Palm on Tuesday with the traders noticing an unusual degree of options activity in the March 9-strike puts; they saw three times their normal volume yesterday.

What must you know?

It looks like somebody knew something, muses Pete Najarian.

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FAST EXCLUSIVE: FREEPORT MCMORAN

If you want to take the pulse of the global economy, you need to talk about copper and Freeport McMoRan, the world's largest publicly traded copper producer.

FCX has become the proxy stock for global growth, says Guy Adami. $75.45 has been the pivot price. Below that you get out and above that you get in.



For further insights who better to talk to than Richard Adkerson the CEO of Freeport McMoRan. Find out what he has to say about the strength of the global recovery. Watch the video now!