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Oil and Energy Dominating Trader Moves

Again, market moves were all about oil . As trader Joe Terranova first explained on Halftime, he thinks the path of least resistance in oil is higher.

As if the geo-political unrest in the Mideast wasn’t enough of a catalyst he sees a confluence of events coming together – and they’re all bullish oil.

For example, China’s oil demand in February was at its second highest level, ever. Also the situation in Japan seems to be improving and the dollar appears to be moving lower, broadly. On top of all that, Terranova says seasonal factors are bullish.

Lately as oil moves in one direction stocks move in the other and Tuesday was no exception with both the Dow and S&P closing lower.

How should you position now?

Instant Insights with the Fast Money traders

As you might imagine Terranova expects crude to break out -- above its March high of $106.50. If you’re not somebody who trades futures, Terranova suggests being selective with equities. Not all energy stocks are moving on higher oil. He likes long UPL as well as Petrobras. “Or you can also buy upside calls in the USO," he says.

In this space, trader Patty Edwards likes playing liquid natural gas and exploration. She suggests long Southwestern Energy and Chicago Bridge & Iron.

Tim Seymour doesn't expect oil to go much higher, though he doesn't think it declines a lot either. He likes playing the space with emerging markets names such as CNOCC .

Steve Cortes is also bullish oil. But his play is to profit from anticipated weakness in consumer discretionary because higher prices at the pump hit consumers in the wallet.

Looking at other second derivative trades, Seymour suggests long Ford , GM and Tata, all of which he thinks are oversold. “I think these names are lying in the weeds,” he says. He’s also bullish Toyota.

Cortes can’t get on board. He thinks the automakers are in the same boat as consumer discretionary stocks, jeopardized if higher oil causes the consumer to retrench.

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TAKE YOUR POSITION: RIM

Research in Motion also landed on the trader radar after the tech company revealed its BlackBerry PlayBook pricing strategy.

Specifically, RIM’s long-awaited tablet will go on sale in North America on April 19 at a base price of $499, matching the pricing for Apple's latest iPad.

RIM, which releases quarterly results on Thursday, said it will sell the PlayBook through retailers and wireless carriers in the United States and Canada, and Best Buy said it was already accepting pre-orders.

The Wi-Fi-enabled PlayBook will compete against the iPad and other devices. It will come in 16 gigabyte, 32 gigabyte and 64 gigabyte versions priced at $499, $599 and $699 respectively.

What’s the trade?

For a stock that’s trading at 9 times earning Tim Seymour thinks RIM is cheap. And he thinks BlackBerry has an audience that will embrace the new PlayBook.

Joe Terranova thinks aftermath from Japan could generate supply side issues that could be a drag on the tablet makers broadly. However, if rival Apple declines, Terranova is a buyer of Apple on a dip.

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STREET FIGHT: IS CISCO A VALUE?

It’s the stock that has captivated tech investors for the last year. We’re talking Cisco .

It's relentless decline has split investors over whether this is a dead company, or a value trade.

Auriga analyst Sandeep Shyamsukha slugs it out with Fast trader Stephen Weiss.

Who makes the better argument? Watch the video now and decide for yourself.







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Trader disclosure: On March 22, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is Long (AAPL); Tim Seymour is Long (CCJ); Tim Seymour is Long (CSCO); Steve Cortes is Long (TM); Steve Cortes is Long (GS); Steve Cortes is Long (CSX); Steve Cortes is Long (SDY); Steve Cortes is Long (SO); Steve Cortes is Long Crude Oil; Steve Cortes is Short (F); Steve Cortes is Short (C); Steve Cortes is Short (UNP); Steve Cortes is Short (SPY); Steve Cortes is Short (DBA); Steve Cortes is Short Wheat; Steve Cortes is Short Soybeans; Steve Cortes is Short Corn; Steve Cortes is Short CAD/USD; Steve Cortes is Short EUR/USD; Joe Terranova is Long (C); Joe Terranova is Long (VRTS); Joe Terranova is Long (GS); Joe Terranova is Long (PNC); Joe Terranova is Long (USB) ; Joe Terranova is Long (JPM); Joe Terranova is Long (UPL); Joe Terranova is Long (CREE); Joe Terranova is Long (MS); Joe Terranova is Long (PBR); Joe Terranova is Long (BAX); Joe Terranova is Long (POT); Joe Terranova is Long (FCX); Joe Terranova is Long (CVE); Joe Terranova is Long (CVI); Joe Terranova is Long (SU); Joe Terranova is Long (TEVA); Joe Terranova is Long (IBM); Joe Terranova is Long (BTU); Joe Terranova is Long (CNX); Joe Terranova is Long (XOM); Joe Terranova is Long (DIS); Joe Terranova is Long (MCD); Joe Terranova is Long (RSX); Joe Terranova is Long (CNQ)

For Brian Kelly
Accounts managed by Kanundrum Capital Are Long (EWJ)
Accounts managed by Kanundrum Capital Are Long (MCP)
Accounts managed by Kanundrum Capital Are Long (NFLX) Puts
Accounts managed by Kanundrum Capital Are Long U.S. Dollar
Accounts managed by Kanundrum Capital Are Long Gold
Accounts managed by Kanundrum Capital Are Long Crude Oil
Accounts managed by Kanundrum Capital Are Long Natural Gas
Accounts managed by Kanundrum Capital Are Short (SPY)
Accounts managed by Kanundrum Capital Are Short Yen
Accounts managed by Kanundrum Capital Are Short Copper

For Sandeep Shyamsukha
No Disclosures

For Carter Worth
No Disclosures

For Barry Ritholtz
Funds Managed by Fusion IQ Own (DELL)
Funds managed by Fusion IQ Own (CBOE)

For Nick Deluliis
No Disclosures

For Brian Stutland
No Disclosures


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