On CNBC's "Fast Money," Kelly said that the stock market appeared to be running out of steam soon.
"I don't know if Alibaba is going to mark the top, but what we're seeing is a topping process," he said. "You saw it with Coca-Cola, McDonald's, IBM. What happens when financial engineering ends and you can't grow your revenues anymore? You've hollowed out the company. You have no revenue growth. So, that is what's happening. We'll see when the tide comes out, IBM, Coca-Cola and McDonald's all swimming naked."
Karen Finerman of Metropolitan Capital Advisors said that she had bought Disney calls while selling higher-strike calls, as well as selling some shares of the S&P mid-cap exchange-traded fund to hedge her positions.
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"It just seemed not quite as panicky as we felt last week on the way down, but it did seem rather indiscriminate buying," she said.
Tim Seymour of Triogem Asset Management cited the European Central Bank's effect on stocks.
"I think this has been all about central banks coming to the rescue," he said. "I think there's a limit to what the ECB can do."
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Seymour cited legal and structural issues with the idea of ECB buying corporate bonds, adding that the stock rally could be ending.
"I've not been as negative as other people, but I do think after this rally you have to sell," he said, noting the nearly 10 percent intraday move in the S&P. "And before that I was actually buying IWM puts today. I was buying the QID, which is the double-Nasdaq short because these are short-term ways for me to play an overbought market."