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Mark Fisher: Oil Likely to End 2011 North of $120

Bears didn’t go down without a fight, but by the closing bell it was the bulls that had prevailed on Wall Street Thursday.

The S&P closed in positive territory with investors paying close attention to the market’s turn higher.

Early in the session stocks traded lower, but they pared losses in the afternoon and ultimately closed higher after a broad sell-off in commodities dissipated and oil prices snapped back.

Commodities have been front and center over the past few sessions, after weakness dragged down the related energy equities.

Considering energy had been a top performing sector over the past two quarters, the next move in this area could have broad consequences.

What should you be watching? How should you position now?

According to esteemed commodity trader Mark Fisher of MBF Asset Management, in the long term, energy should continue its march higher. He expects that by the end of 2011, “Brent crude goes out at $135 and WTI goes out north of $120.”

In fact, he thinks the sharp sell-off both this week and last may have been the best thing for the energy bull. “Now we have a fear premium in the market. Before everyone wanted to be long because there was no fear of being long." But now there's caution, and he thinks that will allow the market to climb a wall of worry.

"If you're aggressive, this is now the time to step up to the plate and buy dips," he adds.

Energy trader Joe Terranova fully agrees. He says go global and own Exxon and other companies tethered to global growth.

Top hedge fund manager Anthony Scaramucci agrees. He also suggests a long position in Exxon.

Even the usually bearish Guy Adami is constructive. He says, “I think the market might have shown its hand on Thursday at least in oil.” He goes on to say, "I think the commodities trade is very much alive."

And if you’re worried about a stronger dollar generating headwinds, Terranova says don’t be. “Fundamentally I think the US dollar is in a secular downtrend,” he says, “and I think it remains in a downtrend.”




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Trader disclosure: On May 12, 2011, 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 (M); Finerman's Firm owns (TGT); Finerman's Firm owns (WMT); Finerman owns (ESV); Finerman owns (JPM); Finerman owns (JPM); Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Pete Najarian owns (PFE); Pete Najarian owns (MRK); Pete Najarian owns (AAPL); Pete Najarian owns (TCK); Pete Najarian owns (AKAM); Pete Najarian owns (C); Pete Najarian owns (HPQ); Pete Najarian owns (TEVA); Pete Najarian owns (MS); Pete Najarian owns (RSX); Pete Najarian owns (GE); Pete Najarian owns (MSFT); Pete Najarian owns (YHOO); Pete Najarian owns (VLO); Pete Najarian owns (TER); Pete Najarian is long (RIMM) calls; Pete Najarian is long (AVL) calls; Pete Najarian is long (NTAP) calls; Pete Najarian is long (XLF) calls; Pete Najarian is long (PMCS) calls; Pete Najarian is long (CVS) calls; Pete Najarian is long (XL) calls; Pete Najarian is long (BSX) calls; Pete Najarian is long (HBC) calls; Pete Najarian is long (EWZ) calls; Pete Najarian is long (XLI) calls; Pete Najarian is long (FCX) calls; Terranova owns (VRTS); Terranova owns (AAPL); Terranova owns (JPM); Terranova owns (V); Terranova owns (BX); Terranova owns (UPL); Terranova owns (BAX); Terranova owns (PFE); Terranova owns (PEP); Terranova owns (MCD); Terranova owns (TM); Terranova owns (DIS); Terranova owns (BJ); Terranova owns (APA); Terranova owns (OXY); Terranova owns (XOM)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & URL PLC
Virtus Investment Partners Owns More Than 1% Of (DRYS)

Scott Nations
**No Disclosurses



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