‘Dangerously Close to Highs’: Adami
The rally in the S&P 500 could be running out of steam, StockMonster's Guy Adami said Tuesday.
"The good news for the bulls, I guess, is the fact that we're hovering around these levels," he said on CNBC's "Fast Money."
Adami noted that the market reacted predictably after the latest jobs report, followed by an expected selloff.
Next, he said, there's probably a "violent move up," followed by a subsequent decline.
But the stock rally could be topping out.
"I think we're dangerously close now to the highs for the year," he said.
Josh Brown of Fusion Analytics said being in stocks was the correct stance at this point, and warned against calling a top in the market, even as the Dow Jones Industrial Average logged an eighth straight day of gains.
"That's a real dangerous game to play," he said. "I don't think we should focus on catching the top here."
Brown said that he would continue to hold the stocks in which he believed but wasn't adding new positions.
"I think that's the right posture for this moment in time," he said.
Trader disclosure: On March 12, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: JOSH BROWN IS LONG LOW; JOSH BROWN IS LONG PFE; JOSH BROWN IS LONG HD; JOSH BROWN IS LONG AAPL; KAREN FINERMAN FL FKL AAPL; KAREN FINERMAN FL KFL BANK OF AMERICA; KAREN FINERMAN FL KFL CITIGROUP; KAREN FINERMAN FL KFL JPMORGAN; KAREN FINERMAN FL WALMART; KAREN FINERMAN FL TGT; KAREN FINERMAN FL KFL MSFT; KAREN FINERMAN FL KFL GOOG; KAREN FINERMAN FL KFL MACY'S; KAREN FINERMAN FL STOCK AND LEAPS GM; KAREN FINERMAN FS LONG PUTS SHORT BONDS JCP; KAREN FINERMAN FS KFS SPX; Guy Adami's wife, Linda, works at Merck; GUY ADAMI OWNS C; GUY ADAMI OWNS GS; GUY ADAMI OWNS INTC; GUY ADAMI OWNS MSFT; GUY ADAMI OWNS AGU; GUY ADAMI OWNS NUE; GUY ADAMI OWNS BTC; DAN NATHAN MS LONG APRIL 22 PUTS; DAN NATHAN BBRY LONG MAR/APR 14 PUT SPREAD; DAN NATHAN TOL LONG APR/JUN 35 PUT SPREAD.