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A Deep Dive...Or Just A Shallow Correction?

Tuesday, 23 Jun 2009 | 4:13 PM ET

Is the market's recent pullback a deep dive or just a shallow correction? Find out from Fast Money trader Joe Terranova!

It’s a shallow correction, exclaims Terranova excitedly. A shallow correction!

What makes him so sure?

Terranova believes a demand for commodities will drive the market, once again. That’s right he expects oil to go higher as well as the spot price of metal, grains and more – all propelled by a weak dollar.

Fast Money Final Call
Whether a shallow correction on is the horizon, with Joe Terranova, Virtus Investment Partners chief alternatives strategist.

Huh?

Remember, most commodities are nominated in dollars and a weaker dollar makes them more expensive relative to other currencies. Hence the higher prices.

But what drives the dollar lower?

Terranova believes the flood of debt coming onto the market will spark inflation. And he’s not alone. Karen Finerman often says the same.

So, what’s the trade?

I had short positions in the OIH and RIG, says Terranova but I’ve closed that out and I’m now long Hess.



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Trader disclosure: On June 23rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (INTC) & Is Short (INTC) Calls; Najarian Owns (JPM) & Is Short (JPM) Calls; Najarian Owns (ORCL) Call Spread; Najarian Owns (YHOO) Call Spread; Terranova Owns (TER), (XBI), (BTU), (MSFT), (HES), (RIMM), (BTU), (MS); Terranova Is Short (GENZ) Call Spreads; Terranova Owns (GENZ) And Is Short (GENZ) Calls; Terranova Owns (DIS) Call Spreads; Terranova Is Short (XOM) Call Spreads; Finerman Owns (TBT); Finerman's Firm Owns (MSFT), (PBR), (RIG), (NOK), (TBT), (YUM), (WMT); Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Is Short (BAC), (IJR), (MDY), (IWM), (SPY), (USO),(CAKE); Seymour Owns (BAC), (AAPL), (EEM), (FXI), (NOK), (PWRD)

CNBC.com with wires

  Price   Change %Change
HES
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RIG
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MV OIL SVCS
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