Bush can still move markets…biggest jump in oil since Hurricane Katrina and alternative energy stocks rocket.

Bolling: China and Russia are talking about building up their strategic oil reserves. The weather patterns have shifted and oil demand is increasing as the US finally sees a cold winter. There is talk of the U.S. doubling it’s strategic oil reserves, but this is really negligable even if it does happen and won’t really affect the market.

Adami: OIH is going to rally no matter what.

Bolling: Agrees, OIH is still a BUY.

Strazzini: Despite the hype trade, get out of ethanol stocks.

Bolling: Corn is going to go up, as a result farmers will shift from wheat and other crops to corn. This should result in soybeans going up. Recommends the following stocks:

BG

SLB

BHI

Strazzini: Make sure to buy OIH!

Macke: MON is a BUY.

Adami: Biodiesel will be the next big energy play, soy will be a big part of that.

The Hidden Trade

Bolling: Nickel is at an 80-month inventory low, driving prices up. Base metals and gold/mining stocks are set to explode to the upside.

Adami: PCP is a grwoth company in a growth industry. You have to won this stock.

Bolling: RIO is still the best stock to own in this area.

Buy GLD at the open, the chart is setting up for a beautiful bullish long-term pennant pattern.

Strazzini: Lots of smart investors are moving into homebuilder stocks.

Macke: You’d be crazy to short the homebuilders right now. This is a trader’s market; buy the following stocks on the dips:

UA

COH

Adami: Airline stocks are way down since we recommended selling…if you’re not out yet, GET OUT! CAL is a SELL.

Macke: Don’t go near the airline stocks. DEAD MONEY.

Trading YHOO and SUNW on Good News

Strazzini: Predicts that YHOO will be up over $30, could even reach high $30s.

Macke: SUNW has turned profitable and now has backing from LBO firm KKR. This stock is a BUY.

Also, buy MCD on the dips. Strazzini and Adami agree.

STREET FIGHT with Herb Greenberg

Herb disagrees with Tim Strazzini about PII. He says that their core business is doing horribly. Strazzini stresses that when you buy PII, you are buying for future earnings growth from new product lines. Greenberg adds that if you are a home trader, short squeeze plays are way too dangerous to try and time.

Herb disagrees with Eric Bolling about TXN. He says that the stock may be dangerous to own in the months ahead. Bolling says that JP Morgan, Merrill Lynch and many other firms upgraded TXN, and that you can easily stand to make $4-5 on a TXN trade. Greenberg says that regardless, TXN remains fundamentally vulnerable.

Herb says that WFMI is dead money. Jeff Macke still likes the stock and says it’s a winner. Herb points out that conventional grocers like Safeway and Kroger’s are challenging WFMI on the high-end, and as a result WFMI’s margins are getting squeezed. He thinks the stock will stay flat.

Face2Face

Margie in NY– Do online DVD rental businesses have any steam left?

Macke: GET OUT OF NFLX and BUY BBI. Bolling agrees.

Judy in AL– What’s up with MRVL?

Strazzini: Take your profits off the table in MRVL or cut your position in half…there is still a lot of downside left on this stock. Stay out of it for at least the next month.

Dennis in MA– Is HXL a good long-term play?

Adami: HXL has a great CEO, but the stock is a little rich right now. Not a fast money stock but you should buy it at $15.

Don in FL– Is PHO a good water play?

Bolling: The problem with PHO is that it’s not a pure water play. The stock is “watered down” with hydro-electric holdings, etc. The following stocks are much better water plays:

VE

SZE

SJW

UU

>>Happy 52 Week High to kkd<<

Boomer Trade

Adami: SYK is still a great stock. It’s a bit overpriced right now, but put it on your shopping list and buy it on the big pullbacks.

Strazzini: ZMH has a better valuation, also likes SYK. Recommends waiting to see 4Q numbers before buying.

Macke: MRX and GSK are both BUYS.

Dice Roll of the Day

InTrade CEO John Delaney on the phone talking about trading “politics and movie” phony stocks (see intrade.com). He says that “The Departed” is in the lead on the site to win Best Picture at The Academy Awards. According to InTrade members, Forest Whitaker has a 70% chance of winning Best Actor, while Peter O’Toole remains a long-shot trade.

FINAL TRADE:

Macke: MCD is a BUY.

Strazzini: SLV is a BUY.

Adami: BHP is a BUY.

Bolling: USO and GLD are BUYS.

Dylan adds: Don’t be suckered by the short-term ethanol bounce. Stay away from the airlines, and COH is looking good. See you tomorrow!