With the government's weekly petroleum status report due out Wednesday, will oil make another record?
Addison Armstrong, Director of Market Research at Tradition Energy joins the panel for this conversation. Following is a summary of his main points.
Is oil poised to break out?
I think we’ll go to wherever the dollar leads us, replies Armstrong. I don’t think we’ll move out of the range ($100 - $110) until we get a move on the dollar.
If there’s a very bullish catalyst on Wednesday I think we might test the $110 level. But only if we break through couldwe be on the march to $120, he speculates.
What’s your instinct?
I think you’ve got to wait and see, Armstrong says. I’d wait to see if oil breaks out over $110 before buying.
And if that happens, how would you play it?
With the United States Oil Fund , he says.
What do you think of natural gas?
I like it. I think it’s the one trade in energy that really has fundamentals, replies Addison. Look at the producers and drillers in this space, he counsels.
I like Apache , adds Guy Adami. I think it’s a buy on any dip.