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Pros: Commodities Bull May Be About To Stumble?

CNBC's Fast Money traders are keeping a close eye on commodities after energy shares helped drive the Dow and S&P 500 higher, ending a three-day losing streak Tuesday.

"There's a big feeling we're going to have $100 barrel oil pretty quickly," says Shawn Hackett, president at Hackett Advisors in a Reuters interview.

Meanwhile, copper and silver also traded higher after concerns about Europe’s debt woes eased after Japan said it would buy 20% of EU debt issued this month.

Then, after the close, Cliffs Natural announced plans to acquire Canada’s Consolidated Thompson Iron Mines in a deal worth $4.95 billion.

Sounds bullish, doesn’t it?

So why do some of the Fast traders think we’re looking at a commodity bull that’s about to stumble?

Instant Insights with the Fast Money traders

Tim Seymour is among the traders who advocate caution.

“It makes me wonder if some of these guys think their assets are very well priced and this is a good level to sell, he muses. In other words maybe some companies are seeing the top and they want to sell their assets right now when they can get a very good price.

It’s a thought provoking idea and one that Guy Adami shares.

"I would caution anybody that isn’t already in the space about establishing a new position here,” he says. “It looks a little frothy.”

Although Joe Terranova is more bullish long-term, in the short-term he thinks “investors should be selective.”

Meanwhile, Barry Ritholtz of Fusion IQ tells us although he’d think about a position in commodities, he would not jump with both feet. “I’d take a small position and look to add to it on a pullback,” he says. However he adds, "a lot of names are persistently overbought which means they could stay that way for a while.”

What do you think? We want to know!

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STRATEGY SESION STREET FIGHT

There was quite the heated debate on Tuesday’s Strategy Session between Herb Greenberg and the president of Redchip over Chinese reverse mergers.

We know it sounds a little academic but it was really quite thought provoking if not down right entertaining.

Don’t believe us? Click here and see for yourself.

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IS ANOTHER COUNTRY STEPPING INTO BAILOUT EUROPE?

The euro gained on Tuesday after Japan said it would buy 20% of EU debt issued this month.

Is it enough? And is there another country getting ready to buy debt?

Andy Busch of BMO Capital Markets says the United States might also be a buyer of EU debt.

That’s right, Uncle Sam. Get all the details. Watch the video now!






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Trader disclosure: On January 11th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AA); Seymour owns (AAPL); Seymour owns (BAC); Seymour owns (F); Seymour owns (GE); Adami owns (AGU); Adami owns (C); Adami owns (BTU); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami's wife works at (MRK); Jon Najarian owns (AA), is short (AA) calls; Jon Najarian owns (AAPL), is short (AAPL) calls; Jon Najarian owns (ADBE), is short (ADBE) calls; Jon Najarian owns (BBY), is short (BBY) calls; Jon Najarian owns (BP), is short (BP) calls; Jon Najarian owns (C), is short (C) calls; Jon Najarian owns (F), is short (F) calls; Jon Najarian owns (GM), is short (GM) calls; Jon Najarian owns (GS), is short (GS) calls; Jon Najarian owns (NFLX), is short (NFLX) calls; Jon Najarian owns (QCOM), is short (QCOM) calls; Jon Najarian owns (AXP), is short (AXP) calls; Jon Najarian owns (STI), is short (STI) calls; Jon Najarian owns (ARUN), is short (ARUN) calls; Jon Najarian owns (EXPE), is short (EXPE) calls; Jon Najarian owns (GXDX), is short (GXDX) calls; Jon Najarian owns (LULU); Terranova owns (GM); Terranova owns (C); Terranova owns (VRTS); Terranova owns (UPL); Terranova owns (PEP); Terranova owns (OXY); Terranova owns (GS); Terranova owns (LTD); Terranova owns (CNQ); Terranova owns (PVH); Terranova owns (CVI); Terranova owns (RIMM); Terranova owns (GLD) puts; Terranova owns (SLW) puts

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)

For Barry Ritholtz
FusionIQ owns (AMT) for clients

For Andy Busch
Busch has no disclosures

For Peter Misek
Jefferies is a market maker in (AAPL)
Jefferies is a market maker in (CELL)
Jefferies is a market maker in (RIMM)
Jefferies is a market maker in (SWIR)
Jefferies acted as a financial advisor to Enfora on sale to (NVTL)
Jefferies is a market maker in (NVTL

For Anthony Scaramucci
Scaramucci and Skybridge Cpital own (UNH)

For John Hodulik
(VZ) is or within past 12 months has been a client of UBS Securities
UBS Securities has provided or are providing non-securities services to (VZ)
UBS Securities has received compensation from (VZ) within the past 12 months

For Scott Nations
Nations has no disclosures

For Kevin Starr
Agios, Edimer, Zafgen, Bluebird Bio Are Portfolio Companies Of Third Rock Ventures

For Tim Seymour SOT
No disclosures for (ADBE) on 11/23

GE is the parent company of CNBC
NBC Universal is the parent company of CNBC



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