With many commodities facing a sharp fall, Fast Money’s Joe Terranova told Dylan Ratigan on Closing Bell that it may be better to avoid oil futures

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[US@CL.1  Loading...      ()] and instead look for undervalued "oil shock" stocks.

Terranova's core strategic theme is to be long on things involved in oil and that are involved in oil's growing demand.

"I don't think the commodities story is dead just yet" said Terranova.

He advised to look for equities that were hurt over the last six months or so by the rapid rise in oil prices (consumer discretionaries for example, did well today).

Terranova believes that asset managers could obtain the exposure they want to energy without resorting to futures, hopefully avoiding anything that might come down from a pressured Congress in September.

Making a call on the direction of oil futures, Terranova pledged that he would not sell oil below $120 a barrel. If oil were to somehow end up below or around $100, he believes it would only be momentary.

Terranova added "The next move I do make in the futures space would be to go long on oil futures." He hasn't made that move yet, but said it would be his next move in the space.

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On Aug 6, 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 (MSFT) (IMAX) (COST) (WMT), Macke Is Short (TM), Finerman's Firm Is Short (IYR) (IJR) (SPY) (MDY) (IWM),Finerman's Firm Owns (ANF) Call Spread, Finerman's Firm And Finerman Own (C) Leap (FLS), Finerman Owns (GS), Finerman's Firm Owns (MSFT) (SUN) (TSO) (VLO), Finerman's Firm Is Short (XLF) (BBT) (COF), Adami Owns (AGU) (C) (BTU) (GS) (INTC) (MSFT) (NUE), Terranova Owns (YHOO) (CME) (SA) (VLO) (KOL) (RIMM) (IYT) (GOOG) (SU) (FCX) (INTC) (XLF) (BNI), Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd., Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO Phoenix Investment Partners Owns More Than 1% Of (ABD) (ARE) (BRE) (CNTY) (CLB) (OFC) (DLR) (ESS) (EXR) (FL) (IAT) (IGE) (LNET) (MAC) (OIIM) (PSPT) (DBC) (DBV) (SLB) (SKT) (BLV), Phoenix Diversifier PHOLIO Owns (IGE) (DBC) (DBV), WIDGET EXTRA: Terranova's Firm Owns (X), Brad Hintz Owns (MS) (CME) (ETFC) (RJ) (AMTD), Accounts Over Which Bernstein And/Or Affiliates Exercise Investment Discretion Own More Than 1% Of (GS), (LEH), (MER), (MS) (GS), (LEH), (MER), (MS) Are Or In Past 12 Months Were Non-Investment Banking Clients (Securities Related Services) Of Bernstein, Which Received Compensation, An Affiliate Of Bernstein Received Compensation For Non-Investment Banking-Securities Related Services From (GS), (LEH), (MER), (MS)

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