Refine Your Strategy?


The oil refiners saw a monster run in Tuesday's trading, all while crude closed at its highest level in two weeks. Is it time to think about taking profits?

Karen Finerman thinks so. With the oil markets so volatile, and the crack spread moving quicker than ever, she unloaded 75% of her position in the refiners over the last few days.

Pete Najarian agreed, saying the refiners should be sold into strength and bought on pullbacks. His favorite way to play the sector is with Marathon , he said, which gets the majority of its profits from the refining sector.

Guy Adami would buy Tesoro on Valero’s strong earnings. TSO might still have room to run higher, he said. And the valuations are too attractive to ignore.

The bottom line? Make a list of the refiners to buy, wait for pullbacks and use weakness to build positions.

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Trader disclosure: On Jan 29, 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), (YHOO), (EMC): Najarian Owns (BIIB), (C), (CSCO), (ETFC), (MS), (MSFT), (MCD), (XLF); Najarian Owns (WEN) Calls, (AAPL) Calls, (YHOO) Calls, (EBAY) Calls; Finerman Owns (GS); Finerman's Firm Owns (TSO), (VLO), (WMT), (YHOO), (SUN); Finerman's Firm Is Short (MDY), (IYR), (IJR), (SPY), (CLWR), Finerman's Firm Is Short (LEH) And Owns (LEH) Puts