In 2005, President Bush generated massive criticism for what many viewed as a slow response to Hurricane Katrina.
Five years later, some are making similar comparisons to President Obama’s response to the recent BP oil spill in the Gulf of Mexico.
In what may be an attempt to stave off further criticism, on Thursday Obama vowed that if domestic oil drilling were to continue it would be under his watchful eye.
The President then suspended exploratory drilling in the gulf and cancelled or deferred some future wells around the country.
And to punctuate just how serious the issue is becoming with voters ahead of the November election, the head of the agency regulating offshore drilling resigned under pressure.
Considering the developments, how should you be positioned now?
I don’t agree with analysts who are saying the worst is priced into BP, says Tim Seymour. Public anger is growing. Politically I expect BP to suffer as much as any company has ever suffered. I wouldn’t touch this stock.
I wouldn’t buy the stock as an investment but if you're a trader I think it could pop as much as 10% on any good news, counters Guy Adami. And if you're looking for a longer term play check out Oceaneering , he adds.
I’m long BP, adds Patty Edwards. Anger about the Valdez spill ultimately dissipated and that’s what I think happens here.
I’m also playing BP with calls to limit my downside, counsels Karen Finerman. You can also look at Hercules and Seahawk but keep in mind they tend to trade in tandem with the price of oil, she says.
It wouldn’t surprise me to see the gulf spill lead to increased interest in oil exploration in Canada. I’d look at Suncor or Canadian National.
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Trader disclosure: On May 27, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman’s Firm Owns (AAPL); Finerman Owns (BAC) & (BAC) Calls; Finerman’s Firm Owns (BAC); Finerman’s Firm Owns (GOOG); Finerman’s Firm Owns (GS) Calls; Finerman Owns (HPQ); Finerman’s Firm Owns (HPQ); Finerman Owns (JPM); Finerman’s Firm Owns (JPM); Finerman’s Firm Owns (PDE); Finerman’s Firm Owns (RIG) & (RIG) Calls; Finerman Owns (RIG) Calls; Terranova Owns (FTO), (STLD), (YHOO), (OIH), (APA), (AXP), (BTU), (SWN), (GLD); Seymour owns (AAPL), (BAC), (F), (GOOG), (RTP), (UNG), (VALE); Adami Owns (C), (GS), (INTC), (MSFT); Grasso Owns (C), (BAC), (JPM), (NDAQ), (BP), (LPX); Edwards owns (VXX); Levy Owns (GS) ; Levy Short (BP) Calls
For Patty Edwards
Edwards owns (AAPL) For Clients
Edwards owns (VXX) For Clients
Edwards owns (MS) For Clients
Edwards owns (JPM) For Client
Edwards owns (BAC) For Clients
Edwards owns (AMZN) For Clients
Edwards owns (GOOG) For Clients
Edwards owns (MSFT) For Clients
Edwards owns (HPQ) For Clients
Edwards owns (YHOO) For Clients
Edwards owns (INTC) For Clients
Edwards owns (NVDA) For Clients
Edwards owns (CSCO) For Clients
Edwards owns (QQQQ) For Clients
Edwards Owns (BP) For Clients
Edwards Owns (C) For Clients
Edwards Owns (COP) For Clients
Edwards Owns (COST) For Clients
Edwards Owns (CVX) For Clients
Edwards Owns (DO) For Clients
Edwards Owns (F) For Clients
Edwards Owns (JPM) For Clients
Edwards Owns (LCC) For Clients
Edwards Owns (MS) For Clients
Edwards Owns (NE) For Clients
Edwards Owns (PDE) For Clients
Edwards Owns (RIG) For Clients
Edwards Owns (SLB) For Clients
Edwards Owns (TOT) For Clients
Edwards Owns (VXX) For Clients
Edwards Owns (XOM) For Clients
Edwards Owns (YHOO) For Clients
Edwards Owns (SPX) For Clients
Edwards Owns (QQQQ) For Clients
Edwards Owns Gold For Clients
Edwards Owns Platinum For Clients
Edwards Owns Silver For Clients
For Jared Levy
Peak6 investments owns and has an options postion (GS)
Peak6 investments is short and has an options postion (MS)
Peak6 investments is short and has an options postion (DB)
Peak6 investments owns and has an options postion (JPM)
Peak6 investments owns and has an options postion (CS)
Peak6 investments owns and has an options postion (BAC)
Peak6 investments owns and has an options postion (UBS)
Peak6 investments owns and has an options postion (C)
Peak6 investments is short and has an options postion (XLF)
Peak6 investments is short and has an options postion (AMZN)
Peak6 investments owns and has an options postion (AAPL)
Peak6 investments owns and has an options postion (YHOO)
Peak6 investments is short and has an options postion (EBAY)
Peak6 investments is short and has an options postion (GOOG)
Peak6 investments owns and has an options postion (MSFT)
Peak6 investments is short and has an options postion (HPQ)
Peak6 investments is short and has an options postion (DELL)
Peak6 investments owns and has an options postion (ADBE)
Peak6 investments owns and has an options postion (BP)
Peak6 investments is short and has an options postion (RIG)
Peak6 investments is short and has an options postion (HAL)
Peak6 investments is short and has an options postion (CVX)
Peak6 investments is short and has an options postion (XOM)
David Hilal
FBR Capital Markets is a Market Maker of (MSFT)
CNBC.com with wires
