NEW YORK (TheStreet) -- West Texas Intermediate rebounded on Tuesday, climbing 1.9% to $50.52 per barrel on news commodities trader Andy Hall acknowledged that he is covering his short position in energy. 

"Hall is like the Warren Buffett of commodities trading," said Guy Adami, managing director of stockmonster.com, during CNBC's "Fast Money." His commentary is worth taking into consideration, Adami said, but believes prices are still headed lower in the long term although in the short term they can rise. 

Brian Kelly, founder of Brian Kelly Capital, pointed out Hall acknowledged his call may be early and that oil prices can still head lower. Kelly thinks oil can continue its decline for several reasons, beginning with supply and demand. In addition, a Federal Reserve rate hike will boost the value of the U.S. dollar, therefore putting downward pressure on commodities like oil. 

Tim Seymour, managing partner of Triogem Asset Management, argued oil has already hit a bottom and he expects the spread between WTI crude and Brent crude to continue widening. 

That widening spread is good for refinery stocks so investors should stay long, according to Steve Grasso, director of institutional sales at Stuart Frankel. He likes Valero Energy (VLO - Get Report). Grasso reasoned oil rallied Tuesday, in part, on the notion Wednesday's inventory report won't be as bad as expected. 

Refiners are a good industry, Adami said. Besides Valero Energy he likes Tesoro Corp. (TSO). 

Kelly, however, argued refiners already had a big rally to start of 2015 so he doesn't want to buy them or any other energy stocks now. 

Alibaba (BABA - Get Report) stock fell 2.9% Tuesday. Shares are now at the lowest levels since the company went public in September and are down 21.5% on the year. Taiwan wants the company to get out of the country within the next six months, according to reports. Other factors pushing shares down are increased competition from JD.com (JD - Get Report) and a large lockup expiration later this month. 

Gil Luria, a research analyst at Wedbush Securities, has a buy rating on the stock with a $115 price target. He says investors have known about many of the current issues since Alibaba went public, but the sentiment was so strong that it didn't matter. Now, that sentiment has swung in the opposite direction. 

Despite all of the negative news, he says the stock will most likely move higher, assuming the company can continue its strong rate of growth. If Alibaba can double its earnings results over the next few years, which seems likely, the share price should increase, Luria concluded.

It doesn't help that Alibaba is approaching its seasonally slow time of the year either, Seymour added. He is long the stock, arguing that Taiwan is unlikely to kick the company out of the country. Alibaba looks likely to head lower and that will ultimately pull down shares of Yahoo! (YHOO) too, Grasso added. 

Seymour took a closer look at the CBOE Volatility Index (VIX.X), pointing out that when the index gets toward $13, it generally leads to a decline in the S&P 500

Grasso also believes a correction may be on the horizon. Look to see if the S&P 500 finds support near 2,093 when it does pull back. Ultimately, he doesn't expect this level to act as support and foresees the index moving lower. 

For their final trades, Seymour is a seller of Toyota Motors (TM - Get Report) and Kelly said to sell the  iShares High Yield Corporate Bond ETF (HYG - Get Report). Grasso is buying KB Home (KBH - Get Report) and Adami is a buyer of CME Group (CME - Get Report). 

-- Written by Bret Kenwell

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