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Jon Najarian: This Energy Stock Due For Pullback

If you think energy shares are destined to march higher; think again. Jon Najarian thinks one energy stock is due for a pullback.

The OptionMonster tells the desk he’s seeing unusual put activity in Exelon .

”Although Exelon is a slow moving utility that doesn't usually cross our monitors, today (Thursday) it's on Depth Charge with the purchase of about 10,000 January 40 puts. A few priced for $0.15 but almost all them fetched $0.20,” Najarian tells us.

Najarian also doesn’t like the technicals.

”The chart on this one looks pretty hairy,” he says. “It has continued trending lower since March 2009, and remained pretty much below its 200-day moving average while making steadily lower highs.”

What’s the bottom line?

”I think the stock may be due for a pullback; certainly options investors are looking to protect,” he says.

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TRADER RADAR: AEGEAN MARINE

Jon Najarian also suggests keeping Aegean Marine on the radar. "If you believe global shipping is going to start picking up these guys provide lubricant and all the things those big ships need," he says.

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STROLL DOWN SANTA CLAUS LANE?

Investors are turning attention to the intersection of Wall Street and Santa Claus Lane; with many wondering if retail stocks have any more room to run.



How should you position?

Since Black Friday retailers have underperformed the S&P – I think it’s a sign of a top in retailers, says Steve Cortes.

Getting short has been death in retail, counters Guy Adami, and I’m not certain it won’t be death again.

As far as I’m concerned, retail is a seasonal trade, adds Jon Najarian. Typically it’s long Labor Day through Black Friday. Then through Christmas I’d go short. But I wouldn’t be short too much after Christmas.

If you’re looking to play the space, based on valuations, I’m looking at Big Lots, says Patty Edwards. And if you’re looking for an M&A play, the teen retailers seem to make sense for private equity.

I’d think Abercrombie would be attractive to private equity, adds Guy Adami.

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FINANCIALS STILL 2011’S BEST TRADE?

Financials traded lower on Thursday, though the sector remains among the best performers this month.

What's the trade?

I think there’s headline risk early in the new year, says Guy Adami. With BofA north of $13 I’d lean toward the downside.

Goldman seems to be failing at $170, says Steve Cortes. If GS continues to struggle at that level; I might take a shot on the short side.


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OIL MARCHES HIGHER

Oil continued its march higher Thursday, again touching new 2-year highs.

How should you trade?

I’d play the space with a long position in Tesoro, says Guy Adami. I suspect that the price of gasoline is going significantly higher.

I’d go long Exxon or Chevron , says Jon Najarian.

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For every 1 cent uptick in the price of gasoline, we lose $600 million in consumer discretionary, says Patty Edwards. I’d keep a close eye on the retailers.

The price action in Walmart may speak to that trend, says Steve Coretes. Their customers are very sensitive to price increases in food and energy.

What do you think? We want to know!




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Trader disclosure: On December 23, 2010, 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); Adami's wife works at (MRK); Cortes is short (LVS); Cortes is short (XRT) vs. (SPY); Cortes is short Nat Gas; Cortes is short Gold; Cortes is short Corn; Cortes is long USD vs. Canadian Dollar; Cortes is long USD vs. Mexican Peso; Cortes is long treasuries; Jon Najarian owns (MSFT), and is short (MSFT) calls; Jon Najarian owns (IBM), and is short (IBM) calls; Jon Najarian owns (XLF), and is short (XLF) calls; Jon Najarian owns (GS), and is short (GS) calls; Jon Najarian owns (ADBE), and is short (ADBE) calls; Jon Najarian owns (V), and is short (V) calls; Jon Najarian owns (RHT), and is short (RHT) calls; Jon Najarian owns (CHK), and is short (CHK) calls; Jon Najarian owns (BBT), and is short (BBT) calls; Jon Najarian owns (SD), and is short (SD) calls

PATTY EDWARDS
Edwards owns (AAPL) for clients
Edwards owns (MSFT) for clients
Edwards owns (GS) for clients
Edwards owns (C) for clients
Edwards owns (CME) for clients
Edwards owns (V) for clients
Edwards owns (NKE) for clients
Edwards owns (AMZN) for clients
Edwards owns (F) for clients
Edwards owns (XLK) for clients
Edwards owns (GLD) for clients
Edwards owns (SLV) for clients
Edwards owns (GE) for clients

COLIN MCGRANAHAN
McGranahan Owns (KSS), (AMZN), (ROST), (SWY), (GPS)
Bernstein Is A Market Maker In (BBBY), (SPLS)
(TGT) Is Or In Past 12 Months Was A Non-Investment Banking Client Of Bernstein (Securities Related Services), Bernstein Received Compensation
Bernstein Or Affiliate Expects To Receive/Seek Investment Banking Compensation From (BBBY), (SPLS), (TGT) In Next 3 Months

DENNIS GARTMAN
Funds managed by Dennis Gartman are short the Euro

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