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Cortes: Analyst Predicting $100 Oil Missed 'This'

Of all the catalysts in this market, perhaps none is more closely watched than the price action in crude oil.

Higher prices typically lift the energy sector but drag down the consumer.

Where’s the price of crude going and what should you make of it?

Instant Insights with the Fast Money traders

According to a note from JPMorgan oil may hit $100 in the near future, reveals host Melissa Lee. They cite Chinese demand, a dollar weakening due to anticipated U.S. quantitative easing and expected restocking of French inventories to drive prices.

I clearly do not agree, counters Steve Cortes. Crude has been trading in a range between $80-$85. Only if crude breaks above $85 can I see it climb to $100. Otherwise my bias is lower. I’d bet crude breaks below $80. The mistake JPMorgan is making here – is that they are not paying enough attention to China tightening. I don't think China drives prices higher, in fact I think they send them lower.

Should oil climb to $100, I’d be concerned says Pete Najarian. I’d think that could slow down the economy rather rapidly. We've had great retail numbers and airlines are performing very well. It seems to me $100 oil would hit both of those areas hard.

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TOPPING THE TAPE: SCHLUMBERGER

Schlumberger was a bright spot in the energy sector with the stock trading higher after the firm posted earnings that more than doubled in the third quarter.

What’s the trade?

In the space I like Nabors as a play on on-shore drilling, says Joe Terranova.

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POLL OF THE DAY

Next week is the busiest week for earnings, with nearly a third of S&P 500 companies reporting and traders anticipating a slew of opportunities. For example, Pete Najarian is keeping an eye on Microsoft . They’ve been beaten up so much they may give the market something positive, he says.

What do you think? We want to know!

Of the stocks listed below which do you think presents the best opportunity for a trade?

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


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UNUSUAL ACTIVITY: STARBUCKS SURGING

Pete Najarian has spotted unusual options action in Starbucks.

A larger than usual volume of the November 28 calls and November 29 calls suggests to him that some investors think this stock is about to make a sharp move higher.

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FAST FLASH - BAIDU

Shares of Baidu hit new all time highs on the back of its third quarter results. The firm reported record profits and continued to take share from Google in China.

What’s the trade?

I was completely wrong about this stock, admits Steve Cortes. If you followed me into a short position cover and get out, he says.


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NO WORLD SERIES?

It's day number 6, and still no resolution to the Cablevision , NewsCorp dispute. Viewers have so far missed out on the Giants, MLB and even House!

With the world series just a few days away, will Cablevision viewers still be blacked out?

Find out how to trade these developments from RBC Capital Markets' David Bank.

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CALL THE CLOSE

Pete Najarian: With BofA turning, maybe the financials will lead the market to 1200 on the S&P.

Joe Terranova:
I’m bullish PCP and Priceline .

Steve Cortes:
With FCX making lows on the day, I’d short the commodities.

Steve Grasso:
I’m concerned about the dollar action. I’d want to see it weaker before I can feel the market will run much higher.



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Trader disclosure: On October 22nd, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Pete Najarian owns (BAC); Pete Najarian owns (GDXJ); Pete Najarian owns (YHOO); Pete Najarian owns (DOW); Pete Najarian owns (DD); Pete Najarian owns (AAPL) call spread; Pete Najarian owns (AKAM) call spreads; Pete Najarian owns (NFLX) call spreads; Pete Najarian owns (F) Bonds; Terranova owns (APA), (AAPL), (AXP), (C), (CRM), (GOOG), (GS), (FCX), (ISRG), (MMM), (ORCL), (PCP), (PEP), (PFE), (TBT), (UPL), (VRTS), (XBI); Cortes owns (K); Cortes owns (TSN); Cortes is short crude oil; Cortes is short gold; Cortes is short (RSX); Cortes is short the U.K. Pound; Cortes owns the S&P 500; Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST)

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 Steve Grasso:
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MCD)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (MGM)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (OPEN)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (UAL)
Stuart Frankel & Co and it’s partners are short (QQQQ)


For Michael Woolfolk
***No Disclosures***

For David Bank
RBC is currently providing (CSC) with investment banking services
RBC intends to seek compensation for investment banking services from (CSC) in the next 3 months.



CNBC.com with wires.

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