Crude Oil may be back near $100, but independent oil trader Dan Dicker warned Thursday that gains may be short lived, that it was a “bull trap.”
“There is nothing really fundamentally driving the oil price here except for the connectivity between other markets,” he told the Fast traders. “That includes the dollar and that includes the stock market.”
He also said news that Morgan Stanley and Goldman Sachs reiterated their bullish view on oil helped drive prices back up.
But Dicker thinks the stock market will go down again, and when it does he thinks oil is going to drop sharply.
Dicker suggests buying protection if you are long oil, or if you are aggressive you can short oil.
As you may have guessed, Joe Terranova isn’t buying it. He said oil is in a long term bull trend and unless non-OPEC producing nations can dramatically increase supply, he doesn’t see the energy trade changing anytime soon.
He suggests a long position in the integrated oil names.