The violent correction in the market this month took all sectors lower. Energy stocks came under pressure in particular because they had been such big winners and hedge funds sold them to raise cash. Traders, is now the time to pick up these correction casualties?
Carter Worth is Chief Market Technician for Oppenheimer & Co and he joins the panel.
Guy Adami believes this is a good time to buy energy stocks. In particular, he likes ExxonMobil (XOM) around $80 as a value -- he also likes Holy Corp (HOC).
Pete Najarian recommends companies in the oil services sector such as Baker Hughes (BHI), Tenaris (TS) and Smith International (SII) as well as Schlumberger (SLB) and Halliburton (HAL) .
Carter Worth concurs. He shows a chart (which is below) of the percentage change in major sectors since last Thursday’s sell-off. He explains that the energy sector has not rebounded yet, and he expects a bounce.
Percentage Change Since Last Thursday’s Sell-Off
Materials +13%
Financials +1%
Industrials +9%
Utilities +8%
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Trader disclosure: On Aug 23 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money; Macke Owns (DIS), (ATVI), (HAS); Najarian Owns (GS) Puts; Najarian Owns S&P Puts; Oppenheimer & Co. Inc. Is A Market Maker In (MRVL)
