Oil freefall is setting up a potential energy trade. Is this a buying opportunity?

Bolling: Oil prices will continue to drop next week. Buy SLB and BHI.

Strazzini says: Oil is starting to regain a favorable Risk/Reward ratio. Says to buy and hold the following three stocks for the next couple of months:

GSF
RIG
NE

Adami reiterates: Get/stay out of the airline stocks!

The Tech Breakdown Trade

Strazzini: IBM still a good stock for 2007. Recommends that you buy the following stocks during a tech selloff:

TXN
AMAT
QCOM
ORCL

Bolling: BRCM charts look bad, appears to be failing.

Strazzini: All of the chips stocks will underperform for the next several months. Short BRCM.

Retail Bright Spots

Retail still shining, buy RTH. Macke says that he would rather buy JWN than INTC.

Adami: GS is still a fantastic buy in the Financial sector.

STREET FIGHT with Herb Greenberg

Greenberg says that RAD is not best of breed as Adami said. Says the Eckerd chain acquisition is a bad move. Adami responds that the Eckerd play will give RAD a national footprint.

Greenberg says that RCL is deeply in debt and is split between junk and investment grade rating. Bolling disagrees and says that the chart for RCL still looks awesome, and that they are going to have a great year.

Greenberg disagrees with Macke on WMT and says that despite some issues, they are still making money hand over fist and are growing earnings. Says WMT has nowhere to go but up. Macke says that WMT stores are unclean and are still NOT A BUY!

Homebuilders showing signs of life

HOV CEO visits the set. He says that the housing market appears to have bottomed out. Also adds that many housing markets in the country (like the Carolinas) have shrugged off the downturn and continue to perform. He also recommends to traders that the best indication of where the housing market is heading is not the monthly numbers from the Fed, but rather the public builder’s sales reports.

>>Happy 52 week high to HNZ

Macke looks at the HDTV trade

Macke “the Lone Wolf” thinks that BBY provides better customer service on HDTVs than Wal-Mart. BBY is best of the lot, beats out CC. Also says that RSH is good for the low end, if they can clean up their stores and inventory a bit and beat expectations, stock could go to $30.

Strazzini says there are too many other good opportunities, don’t buy RSH.

Bolling says that BBY chart is holding at a critical area. Adami says to stay away from Circuit City (CC), that stock is “dead in the water”.

Face2Face:

Cassie in NH asks what is the trade on JNY? Macke says that there wasn’t a buyer for the company when they put it up for sale last summer; this is a red flag. Recommends RL instead.

Ann in CA asks what is the best company to trade that caters to an aging population? Adami says that SYK is the best choice for a healthcare products play. Says to buy it around $54.

John in FL asks Bolling if the ethanol companies are buying corn-yielding acreage? Bolling responds that farmers are holding out on selling as corn has doubled in value in the past year. He says to STAY AWAY from the ethanol stocks like VSE.

FINAL TRADES:

Bolling: Buy RCL

Adami: Buy RAD

Strazzini: Buy ESV

Macke: Buy RTH

Dylan adds: If MOT gets beat up after reporting earnings, start worrying about tech in general.

See you tomorrow!