On Tuesday, the price action of crude again landed on the trader radar with pros wondering if the momentum had just shifted.
Fast trader Joe Terranova thinks energy bulls may now have the advantage – in part because of a key technical move; crude oil surged back above its 200-day moving average .
(The 200-day is significant because chart watchers believe the trend line acts as a major inflection point – as a level or support or resistance. A break above, turns it into support.)
In addition, Terranova thinks fundamentals are bullish. “The oil market has priced in a recession in Europe. If the recession doesn’t happen – demand is strong. And we’re seeing tighter supplies,” he says.
All told Terranova thinks the path of least resistance is higher.
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Trader disclosure: On December 20, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long VRTS; Terranova is long IBM; Terranova is long LQD; Terranova is long MUB; Terranova is long EMC; Terranova is long CSCO; Terranova is long AXP; Terranova is long SBUX; Terranova is long TRLG; Murphy owns AKS; Murphy owns BAC
For Patty Edwards
Trutina Financial is long APPLE (AAPL)
Trutina Financial is long SPDR GOLD TRUST (GLD)
Trutina Financial is long MICROSOFT (MSFT)
Trutina Financial is long INTEL (INTC)
Trutina Financial is long VERIZON (VZ)
Trutina Financial is long ORACLE (ORCL)
Trutina Financial is long ZYNGA (ZNGA)
Trutina Financial is long Target TGT
Trutina Financial is long COSTCO (COST)
For Brian Kelly
Shelter Harbor Capital is long KRE
Shelter Harbor Capital is long IWM
Shelter Harbor Capital is long US DOLLAR
Shelter Harbor Capital is long ITUB
Shelter Harbor Capital is long BBD
Shelter Harbor Capital is short AIV
Shelter Harbor Capital is short AVB
Shelter Harbor Capital is short UBS
Shelter Harbor Capital is short CS
Shelter Harbor Capital is short C
For Jeff Harte
Bank of America Corporation (BAC) - Sandler O'Neill expects to receive or intends to seek compensation from Bank of America Corporation for investment banking services in the next three months. Sandler O'Neill has received compensation from Bank of America Corporation for providing products or services other than investment banking services in the 12-month period ending as of the second most recent month preceding the date of this report. Bank of America Corporation is a client of and receives non-investment banking securities-related services from Sandler O'Neill (based on information as of the end of the second most recent month immediately preceding the date of this report). The reviewer of this report owns shares of stock of Bank of America Corporation.
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Goldman Sachs Group, Inc. (GS) - Sandler O'Neill has received compensation from Goldman Sachs Group, Inc. for providing products or services other than investment banking services in the 12-month period ending as of the second most recent month preceding the date of this report. Goldman Sachs Group, Inc. is a client of and receives non-investment banking securities-related services from Sandler O'Neill (based on information as of the end of the month immediately preceding the date of this report).
Citigroup, Inc. (C)- Sandler O'Neill has received compensation from Citigroup, Inc. for investment banking services in the past 12 months. Sandler O'Neill expects to receive or intends to seek compensation from Citigroup, Inc. for investment banking services in the next three months. Sandler O'Neill has received compensation from Citigroup, Inc. for providing products or services other than investment banking services in the 12-month period ending as of the second most recent month preceding the date of this report. Citigroup, Inc. is a client of and receives non-investment banking securities-related services from Sandler O'Neill (based on information as of the end of the month immediately preceding the date of this report). Citigroup, Inc. was a client of Sandler O'Neill in the 12-month period ending as of the second most recent month immediately preceding the date of this report. During that period, Sandler O'Neill provided investment banking services to Citigroup, Inc.
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Jefferies Group, Inc. (JEF)- Sandler O'Neill has received compensation from Jefferies Group, Inc. for investment banking services in the past 12 months. Sandler O'Neill expects to receive or intends to seek compensation from Jefferies Group, Inc. for investment banking services in the next three months. Jefferies Group, Inc. was a client of Sandler O'Neill in the 12-month period ending as of the second most recent month immediately preceding the date of this report. During that period, Sandler O'Neill provided investment banking services to Jefferies Group, Inc.
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JP Morgan Chase & Co. (JPM)- Sandler O'Neill expects to receive or intends to seek compensation from JP Morgan Chase & Co. for investment banking services in the next three months. Sandler O'Neill has received compensation from JP Morgan Chase & Co. for providing products or services other than investment banking services in the 12-month period ending as of the second most recent month preceding the date of this report. JP Morgan Chase & Co. is a client of and receives non-investment banking securities-related services from Sandler O'Neill (based on information as of the end of the month immediately preceding the date of this report).
For Sara Senatore
CHIPTOTLE (CMG): Bernstein analysts are compensated based on aggregate contributions to the research franchise as measured by account penetration, productivity and proactivity of investment ideas. No analysts are compensated based on performance in, or contributions to, generating investment banking revenues.
For Rick Sherlund
Oracle – I, Rick Sherlund, hereby certify (1) that the views expressed in this Research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in this Research report, (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this Research report and (3) no part of my compensation is tied to any specific investment banking transactions performed by Nomura Securities International, Inc., Nomura International plc or any other Nomura Group company.
For Michael Pachter
Zynga – Wedbush Securities makes a market in the securities of the subject company.
Activision Blizzard – Wedbush Securities makes a market in the securities of the subject company.
Best Buy – Wedbush Securities makes a market in the securities of the subject company.
Electronic Arts – Wedbush Securities makes a market in the securities of the subject company.
For Ben Abramovitz
AT&T - The analyst responsible for preparing the research upon which these ratings are based may receive compensation based upon various factors including the firm's overall profitability, a portion of which is derived from investment banking revenues.
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