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Pros’ ‘Fiscal Cliff’ Profit-Taking Plays

With looming tax hikes and federal spending cuts if a budget deal isn't reached, the CNBC "Fast Money" pros revealed what moves they're making now.

Stephen Weiss of Short Hills Capital said that he would take profits in Sprint, but because of its fundamentals – not the so-called "fiscal cliff."

"I don't run my portfolio purely for tax consequences," he said. "If something's near your price target and you're a holder, then you want to sell it. But the truth of the matter is, it's not going to affect that many people."

Even talk of a Clearwire deal as a potential catalyst for Sprint's shares wasn't enough to keep Weiss in the name.

"It's a distant third in a three-horse race," he said.

Josh Brown of Fusion Analytics was doing nothing based on the potential "fiscal cliff," which would be triggered if Washington lawmakers failed to reach a budget agreement.

"Obviously, some of this is an individual situation, but for the most part, anytime I've seen investors do something en masse because of some kind of a tax idea, it's usually been a wrong idea," he said.

Brown illustrated his point with a historical example.

"In late 1999, you had so many people say, 'Well, I'm not going to sell all these dot-coms because look how big the taxes are going to be.' Well, had they made that move and not worried so much about the taxes, a lot of them would've saved themselves 50 percent, 70 percent," he said. "Stocks just got absolutely crowbarred."

Brown suggested that investors "should sit tight and why they own these stocks to begin with."

Joe Terranova of Virtus Investment Partners would sell Gap.

"I just think this is about a turnaround story and a rebound that's not really going to have much momentum looking forward," he said.

Rosecliff Capital's Mike Murphy would exit positions in Lennar, a strong performer in 2012, because going off the "cliff" would likely hit home builders hard.

"I think this is an area that has a huge run but could sell off on this news," he said. "For right now, I'm out of the space."

Trader disclosure: On Dec. 11, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephen Weiss is long AIG; Stephen Weiss is long BAC; Stephen Weiss is long JPM; Stephen Weiss is long QCOM; Joe Terranova is long VRTS; Joe Terranova is long TJX; Joe Terranova is long YUM; Joe Terranova is long AAPL; Joe Terranova is long SWN; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long VZ; Joe Terranova is long XOM; Josh Brown is long AAPL; Josh Brown is long WFC; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long WMT; Josh Brown is long TGT; Mike Murphy is long AAPL; Mike Murphy is long CSX; Mike Murphy is long DIS; Mike Murphy is long EBAY; Mike Murphy is long V; Mike Murphy is long CMI; Mike Murphy is long YUM; Mike Murphy is long SDS; Mike Murphy is long HD; Mike Murphy is short ITW.

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