Considering the price of oil has been flipping and flopping like a fish out of water, where is it heading?
I think in the second half of the year demand for oil from emerging markets will become robust, speculates Joe Terranova. I also expect a weaker dollar in the months ahead. Both factors should put support under the oil market. In fact, I think it prints $85 before the end of the year.
As a result, I suggest long positions in Hess, Petrobras and Suncor , he counsels.
However, Addison Armstrong of Tradition Energy sees the space a little differently. On Fast Money's Halftime Report he said, if oil doesn’t get back above $71 and the Dow Transports fail, I think oil heads toward $60 pretty quickly. (Of course Armstrong is talking a shorter time horizon than Terranova but it's still quite a contrast.)
And if you're looking to play the space for valuations, Fast Money's resident value investor aka Karen Finerman recommends looking at Anadarko and/or Transocean .
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Trader disclosure: On June 24th, 2009, 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), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman's Firm Owns (MSFT), (WMT); Firm Is Short (WFC); Finerman's Firm Is Short (IWM), (SPY), (MDY), (IJR), (USO); Finerman's Firm And Finerman Own (BAC) Preferred Shares, Finerman's Firm Is Short (BAC); Finerman's Firm And Finerman Are Short (WFC) Preferred Shares, Finerman's Finerman's Firm And Finerman Own (FLS); Jon Najarian Owns (AAPL), (BRK.B), (JPM), (MS), (RIMM), (WFC), (WMT), (YHOO); Jon Najarian Is Short (AZO); Terranova Owns (TER), (XBI), (BTU), (ABT), (RIMM), (HES), (MS), (MSFT)
Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV), (ABD); Virtus Investment Partners Owns More Than 1% Of (ABD), (CAL), (CLB), (DLR), (EPR), (EXR), (IGE), (MEE), (DBC), (DBV), (DBA), (SKT), (UA), (WBMD); Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights; Virtus Investment Partners Owns More Than 1% Of St Mary Land & Exploration Co
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