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Don’t Dump Everything Energy

Some energy services stocks appear poised to perform well despite the recent slide in crude prices. Remember crude is still at historically high levels.

One example is oilfield services provider Schlumberger who said Friday its second-quarter profit increased nearly 13 percent, explains Pete Najarian. The profit increase comes from heavier spending among customers to find more fossil fuels which isn't influenced signifcantly by the day to day movements in crude contracts.

That should bode well for outfits like Halliburton, ConocoPhillips and Baker Hughes which also provide technology, equipment and other services to help oil and natural gas companies find and tap reserves.

Ahead of earnings I’d play any of the stocks mentioned above from the long side, Pete says.

I think you can trade it as along as you have an exit plan, adds Jeff Macke. Remember the technicals are broken.













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Trader disclosure: On July 18, 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 (ATVID), (MSFT), (GS), (WMT), (HAS); Pete Najarian Owns (AAPL), (CHK), (TSO), (XLF); Pete Najarian Owns (CSCO) Calls, (MRK) Calls, ; Pete Najarian Owns A (YHOO) Call Spread; Finerman Owns (GS); Finerman's Firm And Finerman Own (PDE); Finerman's Firm Owns (MCC), (MSFT), (SUN), (TSO), (VLO), (MCC); Finerman's Firm And Finerman Own (C), (C) Leap; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Terranova Owns (VLO), (RIMM), (INTC), (YHOO), (GOOG), (CME), (FCX), (BNI), (XLF), (IYT), (SU), (SA); Terranova Is Short September Crude Oil $130 Puts; Terranova Is Short September Crude Oil $130 Calls; Terranova Is Long September Crude Oil $154 Calls

Terranova Is Phoenix Investment Partners' Chief Alternatives Strategist And Co-Manages The Phoneix Diversifier Fund; Phoenix Investment Partners Owns More Than 1% Of (DBV), (RWX), (LNET), (EXR), (SKT), (DLR), (IGE), (ARE), (DBC), (ABD), (OFC), (CLB), (BLV), (CNTY), (FL), (HPC), (PSPT), (ESS), (OIIM), (BIG), (ENG), (PFD), (DRH); Phoenix Diversifier Fund Owns (IGE), (DBC), (DBV), (GOOG)

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