GO
Loading...

A Crude Story

Wednesday, 2 Jan 2008 | 7:22 PM ET

Crude oil traded above $100 a barrel Wednesday for the first time ever.

Will it keep moving higher, or has the rally run out of fuel?

On a one year basis crude is up 60%. I think crude will meet up with sellers at this level says Oppenheimer Chief Market Technician, Carter Worth

However, year over year energy is only 30% higher and worth a look. I like big integrated such as Exxon , Conoco (COP) and Chevron (CVX). Technical analysis suggests that they are in a position to break out and move higher. Also I think they’re “cheap” on a valuation basis.

On the other hand, the refiners don’t look so good to me, Worth adds. I’d avoid Valero , Sunoco (SUN) and Tesoro (TSO).

What does Wednesday’s market action suggest to you?

I think we’re in a bear market - in financials, as well as consumer discretionary, and real estate. And now tech could be starting to unravel.

How do you play it?

Short S&P and long energy. Or long energy names and short crude.

Fast Money: Technical Outlook '08
CLOSING BELL 3 technical outlook 2008 Carter Worth Chief Market Technician Oppenheimer & Co.

______________________________________________________
Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.

Trader disclosure: On Jan 2, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC), (DIS); Jon Najarian Owns (AGU), (CSIQ), (AMZN), (BG), (DE), (DPTR), (GFI), (GS), (GT), (MON), (MOS), (MRO), (POT), (TSO), (UBS), (VLO), (CME), (GM),(UA); Jon Najarian Is Short (KLAC); Seymour Owns (CSCO), (INTC), (BX); Seygem Asset Management Owns (EWT), (TSM), (X), (PKX)

  Price   Change %Change
VLO
---
XOM
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report