A glimmer of optimism spread across the trading floor on Thursday after stronger-than-expected economic data buoyed spirits on the Street.
Specifically, the Labor Department said initial applications for unemployment benefits fell to a five-month low last week.
Also, the Commerce Department said gross domestic product grew at an annual rate of 1.3 percent in the April-June quarter, up from the previously estimated 1.0 percent pace and helped by consumer spending and export growth.
Sounds like some good news.
And in this market, whenever you get some good news Fast traders Guy Adami and Steve Cortes say sell it - be nimble, take the money and run. (And if you didn't by mid-afternoon Thursday, morning gains were hard to come by.)
Guy Adami just can't get behind any rally right now for anything more than a bounce. With materials driving springtime gains and sending the S&P to bull market highs, the advance "has been predicated on growth in China,” Adami said.
But lately the Asian markets have been trading at lows not seen since July 2009. That's not a good sign.
And to make matters worse, Adami doesn't like the way copper is acting. Often called Dr. Copper because its moves can be used to diagnose the health of the market, copper has plunged lately on high volume. "That doesn’t paint a rosy picture for manufacturing,' he says.
Adami continues to think the S&P 500 needs to test 1020. “We’ll see what happens when we get there,” he added.
Trader Cortes agrees that the market’s headed down.
Cortes said he’s betting on “the hard landing in China,” and pointed to the foreboding price action lately in Chinese stocks—particularly in former high flying stocks like Baidu, Sina and Focus Media.
He would also bet against technology. He thinks the sector’s recent run is running out of steam.
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Trader disclosure: On Sep 29, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Cortes is long SO; Cortes is long DNKN; Cortes is long PEET; Cortes is long Treasuries; Cortes is short AAPL; Cortes is short Nasdaq futures; Cortes is short Aussie; Edwards is long XLK; Grasso owns AKS; Grasso owns AMD; Grasso owns ASTM; Grasso owns BA; Grasso owns BAC; Grasso owns C; Grasso owns D; Grasso owns JPM; Grasso owns LIT; Grasso owns LPX; Grasso owns MAR; Grasso owns MHY; Grasso owns NDAQ; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XHB; Grasso owns XLB; Grasso owns XLI
For Patty Edwards
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