Stocks in New York sank Friday on oil's continued rise and ongoing problems in the housing market. The Dow lost 1.2%, the S&P 500 fell 1.3% and the Nasdaq shed 0.8%.On CNBC's "Fast Money" TV show, Jeff Macke said he would love to buy the dips on the U.S. Oil Fund (USO). He said that buying heights on the USO will mean being on the wrong side of a V-top. He said shorting oil is the "silliest trade right now."Tim Seymour said he wonders why the Federal Reserve isn't paying more attention to inflation. He said that the current environment bears eerie similarity to the 1970s. Jon Najarian predicted a short-term top in crude oil. Guy Adami pointed out that the UltraShort Oil & Gas ( DUG - Get Report) ETF was actually up today. He said this might mean energy will pull back. Macke said that the rise in oil is fueled by speculation. Oil went higher on bearish events, he said. The traders discussed the impact on businesses that depend on oil. In the automakers, Adami said he has liked Ford ( F - Get Report) as a turnaround story. He says he hates General Motors ( GM - Get Report). He said he wouldn't go near any of the automakers at this point and instead recommended Borg Warner ( BWA - Get Report) as a downstream play on the autos. Seymour said that both GM and Ford are down 20% in the past five days. He pointed out that the companies are streamlining and growing their international businesses. Najarian said $4 a gallon for gasoline will likely remain for a very long time. Macke said that consumers are staying home rather than trading in their SUVs for hybrids.
On the airlines, Adami said he would play AMR ( AMR - Get Report) from the long side in anticipation of a drop in oil. He recommended using a tight stop. Najarian predicted that AMR and the rest of the domestic airlines are in bad shape. He said he's more interested in the European airlines.