Sector rotation in the stock market appears healthy, even if it meant a modest pullback in the S&P 500, Josh Brown of Fusion Analytics said Monday on CNBC.
"The market deserves the benefit of the doubt," he said. "The action that we're seeing today is exactly what you want if you want to be constructive for the remainder of 2013. There's absolutely no reason anyone should be rooting for a breakout to new highs today, tomorrow, the next day. Let things settle down a bit. We've gotten off to way too hot a start."
On "Fast Money," Brown argued that shifts in the market were a good thing.
"However, keep in mind all of the rotation we're seeing underneath the surface is very positive, and so far, there are no alarm bells," he said.
Joe Terranova of Virtus Investment Partners said that he was looking forward to the labor report on Friday, which he expected to be disappointing.
"I am taking some of the length that I have in American Express, in Corning and in Morgan Stanley, which I've been riding higher, and I am reducing that today on a disappointing labor report on Friday," he added.
Trader disclosure: On Jan. 28, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long IBM; Stephanie Link is long CAT; Stephanie Link is long SBUX; Joe Terranova is long VRTS; Joe Terranova is long AAPL; Joe Terranova is long GS; Joe Terranova is long AXP; Joe Terranova is long MS; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long SWN; Joe Terranova is long XOM; Joe Terranova is long RIMM FEB $17 PUTS; Josh Brown is long AAPL; Josh Brown is long JPM; Josh Brown is long GDX; Josh Brown is long MS; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long GOOG.
