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The Problem With Waiting for a Pullback

Monday, 6 May 2013 | 12:34 PM ET
The Problem With Waiting for a Pullback
Monday, 6 May 2013 | 12:00 PM ET
The bounce back after stocks retreat has been happening "so, so quickly" lately, Simon Baker of Baker Avenue Asset Management says.

Investors waiting for a cheaper stock market entry point risk missing out, Simon Baker of Baker Avenue Asset Management said Monday.

"Here's the problem if you're waiting for that pullback: The move back comes back so, so quickly," he said.

On CNBC's "Fast Money," Baker said that at a recent Miami conference of high net-worth investors, about half were waiting for such a dip to buy.

The question, he added, was simple: "Where do you want to be in the market?"

Cyclical sectors would likely lead the market higher, and it was time to get out defensive positions, Baker said.

"I'd go long the ETF in technology and short the staples. It's a good hedge," he said. "It's a pair trade, but I think you need to be long."

TheStreet CIO Stephanie Link also said that cyclicals were undervalued.

Link's top picks included Eaton, Stanley Black & Decker and Ensco.

"I think that the global economic story has changed because you have more liquidity measures being implemented," she said.

Trader disclosure: On May 6, 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 JPM; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long HD; Stephanie Link is long GE; Stephanie Link is long ESV; Simon Baker is long AAPL; Simon Baker is long BAC; Simon Baker is long JPM; Simon Baker is long WFC; Simon Baker is long SBUX; Simon Baker is long FB; Simon Baker is long MSFT; Simon Baker is long GOOG; Simon Baker is long HD; Anthony Scaramucci is long AAPL; Anthony Scaramucci is long GS; Anthony Scaramucci is long JPM; Anthony Scaramucci is long MS; Anthony Scaramucci is long MSFT; Anthony Scaramucci is long GOOG; Jon Najarian is long MBI; Jon Najarian is long BAC; Jon Najarian is long JNPR; Jon Najarian is long FFIV; Jon Najarian is long RDN; Jon Najarian is long UVXY; Jon Najarian is short NFLX; Scott Black is long QCOM; Scott Black is long TCAP; Scott Black is long WLL.

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