‘I sold all my equity exposure today’: Pro

Tuesday, 10 Sep 2013 | 6:00 PM ET
'I sold all my equity exposure today': Trader
Tuesday, 10 Sep 2013 | 5:01 PM ET
Brian Kelly of Brian Kelly Capital explains why he took his portfolio to 100 percent cash.

The six-day rally in the S&P 500 suggests a "topping process" for stocks is in the making, Brian Kelly of Brian Kelly Capital said Tuesday.

"I don't know if this is the absolute top, but this is what you see when you start to see markets start to get disconnected from their fundamentals," he said.

(Read more: Stocks end at highs, S&P 500 posts 6-day win streak; Apple falls 2 percent)

On CNBC's "Fast Money," Kelly noted that shares of blue-chip stock IBM had lagged the rally.

"The reason why I bring that up is because they are in every business, and they're about capital spending," he said. "IBM has done nothing here."

The signal Kelly saw in IBM's price action led him to exit the stock market.

Debate it: Bull vs. bear on Lululemon
CNBC's Mary Thompson reports Morgan Stanley CEO Gorman said "the retail activity is pretty muted." The "Fast Money" traders discuss how to play Lululemon ahead of its Q2 earnings data expected for Thursday. Guy Adami and Brian Kelly debate positions.

"For my part, I can tell you what I did today. I sold all my equity exposure today," he said, adding that he was in "100 percent cash."

(Read more: Brace for 'more choppiness' in stocks: Schwab strategist)

Kelly said that he wasn't necessarily seeing gloom ahead.

"I wouldn't go so far as to say putting the bear suit on," he said. "But I bought emerging markets. I bought U.S. stocks. I bought some European stocks. They've had a phenomenal run here, so why not take some off the table?"

Anthony Scaramucci of SkyBridge Capital said that accommodative monetary policy had fueled the bull market.

"I think the market is going a little faster than people expected because I don't think the Fed is going to taper as quickly as people suggest," he said. "A $10 billion taper is not really much of a taper. This is very lax monetary policy, and I think that that's what's affecting the markets right now. My biggest worry with these markets is that there's no top-line growth."

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

Trader disclosure: On Sept. 10, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long BBRY; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long HPQ; Steve Grasso is long MHY; Steve Grasso is long LNG; Steve Grasso is long MJNA; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long QCOM; Steve Grasso is long S; Steve Grasso is long ASTM; Steve Grasso is long POT; Steve Grasso is long DECK; Steve Grasso is long EEM; Peter Misek is long AAPL ; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami's wife, Linda Snow, works at Merck; Anthony Scaramucci is long AAPL; Anthony Scaramucci is long BAC; Anthony Scaramucci is long C; Anthony Scaramucci is long GS; Anthony Scaramucci is long FB; Anthony Scaramucci is long EBAY; Anthony Scaramucci is long GOOG; Anthony Scaramucci is long HPQ.

  Price   Change %Change
S&P 500

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report

  • Jay Yarow, The Business Insider, and Steve Milunovich, UBS, discuss whether Tim Cook is to blame for Apple's drop in growth. I think it's pretty clear they missed the big phone market and overestimated the success of the plastic 5C phone, says Milunovich.

  • CNBC's Eamon Javers reports on Bill Ackman's stake in Allergan. Javers says this is a classic case of insider trading that is not against the rules.

  • FMHR trader Josh Brown thinks Dunkin' Brands looks fantastic technically, while Mike Murphy says investors are questioning the company's massive expansion plans.