If S&P Closes Above 1265, Get Out of the Way: Adami
On Thursday chatter on the floor returned to the potential of a serious end of year rally in the S&P. Just a few days ago, investors had thought a sharp move higher wasoff the table – but optimism has quickly returned to the Street.
Part of the bullish sentiment stems from the latest economic data; new jobless claims hit a 3-1/2 year low last week and consumer sentiment improved in December to its highest level in six months.
Although he’s been bearish, trader Guy Adami is among those traders looking for a whoosh higher. “Price is truth,” he says.
He’s referring to the fact that the S&P has closed higher for the third day in a row. Also, “the market continues to make lower highs,” a bullish sign.
He’s watching the 200-day or 1260, as a point of strong resistance. “If we can close above 1265 - a few points above the 200-day - there's nothing to stop the S&P from going to 1370,” he says. You read that right, the usually skeptical Guy Adami says, “a close above 1265 and get out of the way.”
In other words, the market is trading so technically, he thinks bulls could be off to the races, simply because 1370 is the next big level of resistance after 1260.
Pete Najarian is also bullish. He’s spotted bullish options action in the banks and he believes “financials tend to foretell the direction of the broad market – when they perk up the market does too.”
Top hedge fund manager Keith McCullough agrees with Adami that the 1260 – 1270 level is a key area to watch. However, he's skeptical the market can break through a level of such strong resistance. He doesn’t see a catalyst into year’s end to drive the market.
What do you think? We want to know!
Got something to to say? Send us an e-mail at email@example.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our Web site send those e-mails to firstname.lastname@example.org.
Trader disclosure: On Dec 22, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; eymour is long BAC; Seymour is long POT; Seymour’s firm is long BBD; ami owns C; Adami owns GS; Adami owns NUE; Adami owns MSFT; Adami owns AGL; Adami owns BTU; Adami owns INTC; Najarian is long AAPL; Najarian is long C; Najarian is long Long JPM calls; Najarian is long YHOO; Najarian is long TEVA; Najarian is long PFE; Najarian is long MRK; Najarian is long long LLY calls; Najarian is long COP; Weiss owns QCOM; Weiss owns WLP; Weiss owns NIHD; Weiss owns JPM; Weiss owns KO; Weiss owns DE; Weiss owns EUO; Weiss owns MDRX; Dicker owns oil; Dicker has positions in CVH; Dicker has positions in ATPG; Dicker has positions in PXP
McCullough owns TLT
For Mark Mahaney
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of Akamai Technologies Inc, Netflix Inc, Yahoo! Inc. This position reflects information available as of the prior business day.
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of Google Inc
Citigroup Global Markets Inc. or its affiliates has received compensation for investment banking services provided within the past 12 months from Google Inc
Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from Yahoo! Inc
Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from Akamai Technologies Inc, Amazon.com Inc, Google Inc, Yahoo! Inc in the past 12 months
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): Google Inc, Yahoo! Inc
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities-related: Akamai Technologies Inc, Amazon.com Inc, Google Inc, Yahoo! Inc
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, non-securities-related: Amazon.com Inc, Google Inc, Yahoo! Inc
Analysts' compensation is determined based upon activities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates ("the Firm"). Like all Firm employees, analysts receive compensation that is impacted by overall firm profitability which includes investment banking revenues
The Firm is a market maker in the publicly traded equity securities of Akamai Technologies Inc, Amazon.com Inc, Google Inc, Netflix Inc, Yahoo! Inc.
For Alex Panagiotidis
For Greg Zuckerman
CNBC.com and wires