Josh Brown: This Is a Bear Market Rally
Think the bulls are off to the races? Top trader Josh Brown begs to differ.
"It's important to understand the origin of the recent move," he says in a live interview. "From failed moves come fast moves."
He goes on to explain that last Tuesday bears were unable to break much below 1100 support on the S&P.
"We had a failed breakdown with everyone leaning the wrong way. Short interest in September was at a high not seen since Q3 of September 2008. But when we didn't break down there was a rush of short covering."
He goes on to say, "once the shorts have covered I don't see anyone coming in and buying at a higher level."
Check out the entire conversation. Watch the video now!
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Trader disclosure: On Oct 10, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns AKS; Seymour owns BAC; Seymour owns INTC; Seymour owns POT; Terranova is long VRTS; Terranova is long LQD; Terranova is long MUB; Terranova is long FCX; Terranova is long TBT; Terranova is long OXY; Terranova is long HOS; Terranova is long F; Terranova is long LULU; Terranova is long OIH; Terranova is long CAT; Terranova is long AXP; Terranova is long EMC; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM; Terranova is long Silver December $40 puts; Weiss is long RIMM; Weiss is long QCOM; Weiss is long HPQ; Weiss is long EUO; Weiss is long NIHD; Weiss is long COP; Weiss is long KEG; Weiss is long YHOO; Kinahan is short SPY thru options; Kinahan long CSCO; Nations is long SPY
For Brian Kelly
Funds managed by Brian Kelly are long IBM
Funds managed by Brian Kelly are long QCOM
Funds managed by Brian Kelly are long GLD
Funds managed by Brian Kelly are long AAPL
Funds managed by Brian Kelly are long LO
For Chris Verrone
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Funds managed by Gartman are long Aussie dollar/short of the Sterling
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CNBC.com with wires.