On Friday Street pros were trying to determine how to play the market after the S&P edged lower as investors took their fingers off the buy button.
Money managers were almost dizzy from the rapid ascent of the stock market which closed above its 200-day moving average for the first time since August – a bullish sign.
The S&P 500 is up more than 13 percent this month, on pace for its biggest monthly gain since October 1974.
The recent euphoria has been largely generated by a long-awaited agreement to help contain Europe's two-year debt crisis.
But some investors remain skeptical with specific details about the debt deal yet to be worked out.
How should you play this market?
Strategy Session with the Fast Money traders
OptionMonster Jon Najarian is bullish and thinks the market climbs into the end of the year. Not only does he find events in Europe positive but also, “There are a lot of investors who are chasing returns – there’s an under-invested segment of the community.”
Both catalysts should drive future gains, he says
But don’t take that to mean you should chase the rally today – that’s not what Najarian is saying. “After 300 points should you jump on he band wagon, here? No!”
However he is a buyer of pullbacks.
Trader Patty Edwards says much the same “I wouldn’t chase it today but I would layer in, over the next week or two,” she says. “I also think we go higher into year’s end.”
Pete Najarian completes brother Jon’s thesis. “Bet like buffet,” he says. Be greedy when others are fearful!”
Always focused on technicals, trader Steve Grasso says watch 1275 on the upside and 1257 – which is flat on year – on the downside. How the market behaves at those levels should be telling, he says.
What do you think? We want to know!