'Fast Money' Recap: Natural Gas Glows
08/27/08 - 07:14 PM EDT
Peter Garcia
On CNBC's "Fast Money," Melissa Lee started the program by mentioning the "there was a jump in crude oil today as a result of the Hurricane Gustav." Many investors are speculating the hurricane will hit the Gulf Coast. Lee asked the panelist whether this move is sustainable.
Guy Adami said he was not sure if the move was sustainable but instead mentioned about how traders can take advantage of Exxon Mobil (XOM Quote - Cramer on XOM - Stock Picks). He said "every time Exxon Mobil goes to $78-$79, it becomes a value play." He said to sell it as it goes to $82-$83 and to buy back again if it drops to the $78-$79 range. Jon Najarian said the "the durable goods numbers was fantastic, which is why the market was up nicely." The Chart of the Day showed natural gas vs. crude oil Joe Terranova said "it is all about supply and all about investment" that is moving crude oil and natural gas. He said this is why the chart shows how crude oil has held up nicely compared with natural gas. Najarian said he would be a buyer of natural gas. He mentions a ratio between the prices of crude oil and those of natural gas. He said the ratio is typically about 9.2 but is now about 14, which he feels makes natural gas a buy. Quint Tatro said it was nice the markets was up today but said the "volume is pitiful." Since the markets has been trading in relatively low levels, he said it makes it hard for him to be bullish.
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