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Refine Your Strategy?

Tuesday, 29 Jan 2008 | 6:52 PM ET


The oil refiners saw a monster run in Tuesday's trading, all while crude closed at its highest level in two weeks. Is it time to think about taking profits?

Tomorrow's Trades #2
An outlook on refineries, with the Fast Money traders.

Karen Finerman thinks so. With the oil markets so volatile, and the crack spread moving quicker than ever, she unloaded 75% of her position in the refiners over the last few days.

Pete Najarian agreed, saying the refiners should be sold into strength and bought on pullbacks. His favorite way to play the sector is with Marathon , he said, which gets the majority of its profits from the refining sector.

Guy Adami would buy Tesoro on Valero’s strong earnings. TSO might still have room to run higher, he said. And the valuations are too attractive to ignore.

The bottom line? Make a list of the refiners to buy, wait for pullbacks and use weakness to build positions.

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Trader disclosure: On Jan 29, 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 (DIS), (YHOO), (EMC): Najarian Owns (BIIB), (C), (CSCO), (ETFC), (MS), (MSFT), (MCD), (XLF); Najarian Owns (WEN) Calls, (AAPL) Calls, (YHOO) Calls, (EBAY) Calls; Finerman Owns (GS); Finerman's Firm Owns (TSO), (VLO), (WMT), (YHOO), (SUN); Finerman's Firm Is Short (MDY), (IYR), (IJR), (SPY), (CLWR), Finerman's Firm Is Short (LEH) And Owns (LEH) Puts

  Price   Change %Change
MRO
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TSO
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VLO
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  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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  • 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

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