GO
Loading...

Market Pro: Crude Prints $70 Before $90

Energy bulls ran out of steam on Thursday with crude slipping from 5 month highs.

Although the move might seem like an expected pullback after a huge run, Fast Money trader Steve Cortes of Veracruz thinks the reversal was much more meaningful.

In fact he thinks crude will print $70 before it prints $90.

”Crude tried to pop above its early August highs which was just under $84 but closed well below that,” he says. “It was a huge outside down day meaning technically the stock made a higher high and lower low."

That kind of action is largely bearish.

"It was a pretty serious intra-day reversal. I think crude is sending a major warnings signal,” he adds.

And it’s not just crude that has Cortes thinking about short positions. “I think the whole resource trade has gotten carried away,” he says.

If we continue to see weakness in the euro , pound , gold as well as crude -- and the dollar higher -- Cortes intends to add to his short positions.

Vote
Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.

Of course, we realize that Cortes is a contrarian. Energy bulls such as Joe Terranova see the price action rather differently.

”I’m on the other side of this trade,” says Terranova.

He thinks the sell-off was more of a pullback in a market that’s appreciated substantially.

”Support had been $69-72 but I think it’s been raised. “Now it’s $75-$78 and if oil tests that level I’d go overweight.”

*You can find our entire conversation with Cortes about 14 minutes into the Word on the Street video clip.

What do you think? We want to know!


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Oct. 7, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (APA), (AAPL), (IBM), (EOG), (HES), (OIH), (OXY), (ORCL), (RSH), (UPL), (SU), (VRTS), (XBI), (RIG), (VRTS), (FTO), (PEP), (JOYG), (C); Terranova Is Long (GLD) Puts; Terranova Is Long (FCX) Puts; Terranova Is Long (JOYG) Puts; Terranova Is Long (OIH) Puts; Terranova Is Long (FFIV) Puts; Karen Finerman owns (JCG); Karen Finerman owns (GYMB); Karen Finerman owns (AEO); Karen Finerman is short (ANF); Karen Finerman's firm is long (BP); Karen Finerman's firm is long (YUM); Karen Finerman's firm is long (GENZ); Karen Finerman's firm is long S&P 500 Puts; Karen Finerman's firm is long Russel 2000 Puts; Karen Finerman's firm is short (JR); Karen Finerman's firm is short (MDY); Karen Finerman's firm is short (IWM); Karen Finerman's firm is short (SPY); Cortes Is Short (XLF); Cortes Is Short (BAC); Cortes Is Short (BIDU); Cortes Is Short Euro; Cortes Is Short Mexican Peso; Cortes Is Long German Bonds; Pete Najarian is long (AA) Calls; Pete Najarian is long (MAR) Calls; Pete Najarian is long (YUM) Calls; Pete Najarian is long (AKAM) Calls; Pete Najarian is long (BP) Calls; Pete Najarian is long (BEXP) Calls; Pete Najarian owns (BRCD); Jon Najarian Owns (BKE); Jon Najarian Owns (ZUMZ); Jon Najarian Owns (ADBE), Is long (ADBE) Call Spreads; Jon Najarian Owns (DCTH), Is long (DCTH) Call Spreads; Jon Najarian Owns (ANF), Is Short (ANF) Calls; Jon Najarian Owns (LTD), Is Short (LTD) Calls; Jon Najarian Owns (AEO), Is Short (AEO) Calls; Jon Najarian Owns (AA) Call Spreads; Jon Najarian Owns (SVNT) Call Spreads; Jon Najarian Owns (BEXP) Calls; Jon Najarian Owns (JCP) Calls

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DRYS)


For Deborah Weinswig
An Employee Of Citigroup Global Markets Or Affiliates Is A Trustee Of (TGT)
Citi Employees Own (WMT), (JCP)
Citigroup Global Markets or Affiliates Owns 1% Or More Of (SKS)
Citigroup Global Markets Or Affiliates Has Managed Or Co-Managed An Offering Of (DG), (HD), (TGT), (WMT) In Past 12 Months
Citigroup Global Markets Or Affiliates Received Investment Banking Compensation For Services Provided In Past 12 Months From (DG), (KR), (SKS), (TGT), (WMT)
Citigroup Global Markets Or Affiliates Expects To Receive/Seek Investment Banking Compensation From (HD), (KR), (WMT) In Next 3 Months
Citigroup Global Markets Or Affiliate Received Non-Investment Banking Compensation From (HD), (JCP), (KSS), (KR), (M), (SWY), (SVU), (TGT), (WAG), (WMT), (COST) In Past 12 Months
(DG), (HD), (KR), (SKS), (TGT), (WMT) Are Or In Past 12 Months Were Investment Banking Clients Of Citigroup Global Markets
(CVS), (DG), (HD), (JCP), (KSS), (KR), (M), (SWY), (SKS), (SVU), (TGT), (WAG), (WMT), (COST) Are Or In Past 12 Months Were Non-Investment Banking Clients Of Citigroup Global Markets (Securities-Related Serices)
(HD), (JCP), (KSS), (KR), (M), (SWY), (SVU), (TGT), (WAG), (WMT), (COST) Are Or In Past 12 Months Were Non-Investment Banking Clients Of Citigroup Global Markets (Non-Securitites-Related Services)
Citigroup Global Markets Or Affiliate Received Compensation From (DG) In Past 12 Months
Citigroup Global Markets Is A Market Maker In (CVS), (M), (COST)
Citigroup Global markets And/or Affiliates Has A Significant Financial Interest In Relation To (CVS), (HD), (KSS), (KR), (LOW), (M), (JWN), (SWY), (SKS), (SVU), (TGT), (WMT)
Citigroup Global Markets Or Affiliates Owns 5% Or More Of (SKS)

For Mike Olson
(ROVI) has been an investment banking client of Piper Jaffray during the past 12 months
Piper Jaffray is a market maker in (AAPL)
Piper Jaffray is a market maker in (ADBE)
Piper Jaffray is a market maker in (ADSK)
Piper Jaffray is a market maker in (AKAM)
Piper Jaffray is a market maker in (AVID)
Piper Jaffray is a market maker in (CSTR)
Piper Jaffray is a market maker in (CTRP)
Piper Jaffray is a market maker in (DTSI)
Piper Jaffray is a market maker in (EXPE)
Piper Jaffray is a market maker in (LNW)
Piper Jaffray is a market maker in (NFLX)
Piper Jaffray is a market maker in (PCLN)
Piper Jaffray is a market maker in (PMTC)
Piper Jaffray is a market maker in (RNWK)
Piper Jaffray is a market maker in (ROVI)
Piper Jaffray is a market maker in (SFLY)
Piper Jaffray is an occassional market maker in (DLB)
Piper Jaffray is an occassional market maker in (OWW)
Piper Jaffray is an occassional market maker in (STV)

For Simon Baker
Simon Baker Owns (SLW)
Simon Baker Owns (IGTE)
Simon Baker's Firm Owns (SLW)

CNBC.com with wires.

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report

  • Bill Nygren, Oakmark Fund, explains why Apache, Bank of America and Google will be winners in 2015.

  • Nick Tiller, Sustainable America founder and chairman, tells CNBC's Kate Kelly oil prices are poised for a tradable rally. Tiller likes the Brent ETF and energy sector.

  • Discussing interesting trends contributing to the market's rally into year's end, with the FMHR trader Josh Brown and Dan Greenhaus, BTIG.