Trade Tomorrow: Crude, Dell & More
#1 – CRAZY CRUDE
Talk about fickle. After climbing about $6 dollars earlier in the week crude tumbled on Friday recording its biggest one-day drop in 16 years. How should you trade this one?
This is a thin August market, reminds Tradition Energy's Addison Armstrong on Fast Money. People are on vacation and volume is low so moves get exaggerated. And most of the trading has been technical. We moved through a lot of support and resistance levels.
Going into the fall I'm cautiously bullish oil, Armstrong admits. The $110 level looks like it's an area of strong support. But I also think the trading will be a bit constrained. There seems to be strong resistance around $125. It would not surprise me to see us trading in this range for a while.
#2 - WHAT'S NEXT FOR TECH
Tech investors are eager to hear from Dell next Thursday after rival Hewlett Packard said their profits surged by 14% in the quarter. How should you trade tech stocks ahead of Dell earnings next week?
The stock has been trading around $25 which has been both support and resistance, says Guy Adami. There are lots of positives; Cowen recently upgraded the stock and Dell seems to be gaining on Hewlett-Packard ever so slightly. Also they're cutting their expenses and Michael Dell is back, hands on. I think investors could see an earnings surprise to the upside.
I like it technically, adds Quint Tatro.
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#3 - KUMBAYA MARKET
Can commodities, banks and stocks all trader higher, together?
I don't have that much confidence in it, says Joe Terranova. If there is some stability in the commodities market and a conclusion in Freddie and Fannie then maybe it will all come together.
Zach Karabell is a little more optimistic. "The market can rally pretty steeply even if we are flat for the next two months."
I think if the administration wants a shot in November we'll see intervention, adds Quint Tatro. I expect to see some odd and mysterious things happen to get the feel good into November. I have a hard time getting short this market.
I think consumers are getting used to gas prices, adds Guy Adami. As long as they don't spike again the market should be fine.
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Trader disclosure: On Aug 22, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Karabell Owns (AAPL), (FMCN), (GLD), (GOOG), (JPM), (NOK), (SLB), (RIO), (WFR), (CHL), (WFR): Tatro Owns (C), (GS): Quint Tatro Is The Principal Of Tatro Capital: Tatro Capital Owns (AAPL), (FXI), (QQQQ), (SPY), (T), (XLF), (JWN), (SSO), (ENER), (ESLR): Jon Najarian Owns (AAPL), (BKC), (BRK.B), (C): Jon Najarian Owns (RIMM) Calls; (SCHW) Calls, (AKAM) Calls: Terranova Owns (RIMM), (GS); Terranova is Long Sept. Mini S&P Futures, Terranova Owns (AIG) Puts; Terranova Is Long October Crude Oil Futures: Terranova Is Long Crude Oil Time Spread (Long Dec. 2008, Short Dec. 2012)
Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.; 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)
Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO
Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)