Market in No Man’s Land

Investors are beginning to fear that the stock market may be in limbo for the next two months.

Earlier in the week reports surfaced that the Treasury did not plan to use about half of the $700 billion bailout that Congress approved this fall to aid the financial industry. Instead the remaining money will be left for the Obama administration.

Although those reports were neither confirmed nor denied they surfaced at a delicate moment in the financial crisis and were more than enough to spark serious worries up and down the Street.

If the current administration backs away from the TARP (troubled asset relief program) will the economy take a turn for the worse?

The market looks like it’s going to take out some key technical levels, according to Joe Terranova. And having a lame duck administration won't help. “But I think you’re going to look back in three years and say there were some great opportunities.

One of those opportunities may be in ExxonMobill which is trading at the same levels as it was when oil was $105. “The reason being there is concern about how to grow the future supply of oil 3 to 5 years from now. It’s not going down and it’s not going down for a reason.”

Terranova also recommends looking at Burlington Northern and Disney as plays on strong fundamentals. But he reminds, "these are trades looking beyond the immediate fear in the market."

And although Terranova is an oil trader, he does not think the commodity itself is a smart play right now. And a new report from, Deutsche Bank confirms that thesis. The report suggests oil prices could fall to as low as $40 a barrel next year as more efficient refining capacity comes online and production costs for some regions fall.

And as Jeff Macke always says, there's nothing wrong with cash! At least until the new administration comes in and there's more certainty in the market.

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Trader disclosure: On Nov.19, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Owns (SDS), (UUP), (DIS), (MCD), (WMT), (MSFT); Macke Is Short (YHOO), (TM); Najarian Owns (IYR) Puts; Najarian Owns (MER) Put Spread; Najarian Owns (CVX) Put Spread; Finerman's Firm Owns (OIH) Puts; Finerman's Firm Owns (MSFT), (SUN); Finerman's Firm Is Short (USO), (IYR), (IJR), (MDY), (SPY), (IWM), (RTH), (BBT), (VNO), (COF), (IYR)

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