Top Energy Trades As Mideast Tensions Escalate
Tensions in the Mideast again landed front and center in the energy markets after Israel bombed dozens of targets in the Gaza Strip and said it was prepared to step up its offensive by sending in troops.
The price action in Brent, the international benchmarket, broke through its 50-day moving average $111.09 a barrel after dropping below that average on Oct. 18.
That could be a bullish technical signal.
As the conflict between Israel and Hamas escalates and oil moves higher, how should you put money to work?
Top energy trader Joe Terranova, chief market strategist for Virtus, thinks the best place to play is refiners – largely because they have momentum. "In the space I likeTesoro best," he said.
And if you think tensions in the Mideast will spread to Iran, Terranova suggested looking up north at Suncor. "Based in Canada they could make up a shortfall," he said,
Trader Josh Brown, author of The Reformed Broker blog, likes playing the space with Chevron Essentially Brown thinks the stock is oversold. "With Chevron down 10-12 points for no apparent reason – I'd play this stock," said Brown. It's just too cheap.
OptionMonster Jon Najarian likes Western Refining and Valero. "They're both attractive," he said. "And they pay nice dividends."
Posted by CNBC's Lee Brodie
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CNBC.com with wires.