On Tuesday, optimists were starting to think that 2012 was going to be their year.The Dow surged by triple digits and the S&P closed at its highest since late October.The positive sentiment largely stemmed from the latest ISM report , which showed construction spending and factory activity in the US was stronger than expected. Also overseas data showed Germany’s unemployment declined more than forecast.Seems like every reason to hit the buy button. But the Fast Money pros say only do that if you’re a nimble short term trader. The only see gains, in the near term.
As you may remember, recently Guy Adami said the market could whoosh higher if it was able to close above 1265 – the 200-day moving average - and on Tuesday the S&P did just that.
“That sets us up a drive toward 1350,” he says. “I think we have almost another 80 handles in the S&P.”However, if you’re a long-term investor, - that is, someone looking to buy and hold for a year or longer - our pros say don't buy, yet. You'll have the opportunity to get in, lower.
“At 1350 I think we’re looking at a double top,” Adami explains, a bearish chart pattern.“Nothing has fundamentally changed,” notes trader Karen Finerman. The overhang of Europe is still there.”Page 1 of 4 | Next Page