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Fast Money

Crude Reversal?

Oil prices edged higher Wednesday but steadied after failing to top $120 dollars a barrel, as traders digested a mixed report on US stockpiles and growing concerns over soaring energy costs. Is this the end of the trend?

Strategic investor Dennis Gartman, author of the Gartman Letter joins the panel for this conversation. Following is a summary of his main points.

What’s next for crude oil?

It’s been a long run to the upside, replies Gartman. But now crude looks "sporty" to me. I wouldn’t be surprised if we took as much as $10 dollars out of it over the course of the next 2 weeks.

However, even if crude oil were to break I still like the Oil Services HLDRS . In fact, you might want to short crude and go long the service stocks.

What’s your view on gold?

I see a gold market that’s not going to make new highs, replies Gartman. All of a sudden at $950 gold failed and couldn’t rally. Everything was in its favor but it couldn’t go up. I wouldn’t be surprised to see it go down another $40 from here.

Tomorrow's Trades: Crude

What’s your bottom line?

There’s a bubble in commodities and we need to take the heat off and get the bubble to slow down.

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Trader disclosure: On Apr. 23, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (DIS), (INTC), (MSFT), (YHOO); Najarian Owns (AAPL), (CSCO), (XLF), (YHOO), (BEAV); Najarian Owns (CHK) Calls, (MSFT) Calls, (POT) Calls; Finerman Owns (GS); Finerman's Firm Owns (MO), (MSFT), (PM), (SUN), (TSO), (VLO), (WMT), (YHOO); Finerman's Firm Owns (FNM) Calls; GE Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"

Gartman Owns (AAPL), (RIMM), (PCU), (SWC), (ICE), (CQB), (AGU), (FSLR), (DBA), (JJG), (HOV), (DUG); Gartman Is Short (WFMI), (GM), (PSP), (SWY), (APOL), (PNRA); Gartman Owns Calls In (FSLR), (AGU), (PCU), (RIMM); CIBC Gartman Index Owns Copper, Aluminum, Gold, Sugar, Corn, Soybeans, The EUR, Natural Gas; CIBC Gartman Index Is Short Crude Oil