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Tuesday, 3 Jun 2008 | 6:11 PM ET

Oil fell to a 2-week low after Ben Bernanke supported a strong dollar. What's the best way to play the pullback?

Joe Terranova, Chief Alternatives Strategist At Phoenix Investment Partners, joins the panel for this conversation. Following is a summary of his main points.

On Wednesday morning oil traders will be closely watching the weekly supply report, Terranova explains. I think crude could pull off and possibly test the technically important $120 barrier.

How are you trading?

I’m short Hess , long Sunoco and long Southwest as well as long the Canadian dollar. It’s a bearish position but "I’m only holding it to about June 10th – 15th then I'll pull it off. It's an opportunity trade."

How about after that?

I recommend getting into natural gas and steel. That’s probably where you want to be in the second half of the year, Terranova adds.


Read More

Tomorrow's Trades #1
Oil falls to a two-week low after Fed Chairman Ben Bernanke supports a strong dollar, with Joe Terranova, Phoenix Investment Partners and the Fast Money crew.

> Find out how Addison Armstrong, Director Of Market Research At Tradition Energy recommends trading crude in “Oil & The Fed”

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Trader disclosure: On June 3, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Owns (INTC), (MSFT), (WMT); Najarian Owns (HK), (AAPL), (BHI), (HD), (TSO), (XLF), (XTO); Najarian Owns (LEH) Puts; Finerman Owns (GS); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Owns (AET), (AAPL), (MO), (MSFT), (SUN), (TSO), (VLO)’ Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM)

Phoenix Investment Partners Ltd. Is Long Hess Corp., Sunoco, Southwest Airlines; Terranova Owns (FXC), (LUV), (SUN), (GS); Terranova Is Short (HES)

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