The S&P 500 will likely top out at 1,725 as details of the Fed's taper becomes known, at which point investors should consider shorting one industrial name, Guy Adami of StockMonster said Tuesday.
"CAT's rallied because the broader market has done well," he said, adding that it could present a short opportunity around $88 to $90 per share. "Each high is a lower high."
Adami also said that he expected that the Federal Open Market Committee would reduce its $85 billion-per-month asset-purchase program by about $15 billion, sending stocks higher.
(Read more: Time to start 'taper' rotation: Joe Terranova)
On CNBC's "Fast Money," Brian Kelly of Brian Kelly Capital said that Caterpillar served as a China proxy.