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May’s OK, Worry About Later: Pro

Brace for stocks to pull back toward the end of the summer, Simon Baker of Baker Avenue Asset Management said Wednesday.

"I actually think May looks OK right now, and I'd be a little more worried about June and July," he said.

On CNBC's "Fast Money," Baker said that he was focusing on the uniqueness of this climate.

"First of all, you've got to ask what's different in this market," he said, citing as previous factors such as the so-called "fiscal cliff and financial crisis in Europe.

This time, he was looking at the stock market's recent performance for May, which appeared solid.

But negative earnings revisions look likely to pick up in the summer, Baker added.

"It really starts to soften in July and August," he said.

OptionMonster's Pete Najarian said that he saw a longer-term upward trend.

"I think what we're seeing right now is that huge run-up to this near-1,600 level in the S&P," he said.

Najarian looked to reversals in Pfizer and Merck.

"I think these names are not just defensive names. I think they still do have growth," he said. "They still have earnings power."

Trader disclosure: On May 1, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Enis Taner is long GS; Enis Taner is long AAPL CALL FLY; Enis Taner is long QCOM CALL FLY; Enis Taner is long XLE PUTS; Enis Taner is long FXE PUTS; Enis Taner is long XHB PUTS; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC CALLS; Pete Najarian is long BBRY STOCK & CALLS; Pete Najarian is long SBUX; Pete Najarian is long FB STOCK & CALLS; Pete Najarian is long F CALLS; Pete Najarian is long MRK ; Pete Najarian is long BMY; Simon Baker is long AAPL; Simon Baker is long C; Simon Baker is long YHOO; Simon Baker is long SBUX; Simon Baker is long MSFT; Simon Baker is long GOOG; Simon Baker is long F; Simon Baker is long SHK; Simon Baker is long JNJ; Simon Baker is long GIS; Simon Baker is long ORCL; Simon Baker is long COH; Jon Najarian is long BZH CALLS; Jon Najarian is long CTSH CALLS; Jon Najarian is long OC CALLS; Jon Najarian is long SPX; Jon Najarian is long EEM; Jon Najarian is long FXI.

Symbol
Price
 
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DJIA
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S&P 500
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PFE
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MRK
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