Trader Joe Terranova shares the skepticism. “We’re not seeing a reallocation of money out of fixed income funds into equity funds – last year fund flows drove markets higher.”
He also thinks the price action should be stronger considering Apple's blockbuster earnings and a Fed statement in which the central bank promised to keep rates 'lower for longer.’
Terranova tells us that if the market breaks 1306, the lows of the week, it will give him cause for concern. “I’m taking off long exposure.”
Those calls are largely trading calls. If you're an investor with a longer time horizon, both Tim Seymour and Ron Insana think there’s every reason to remain bullish.
“The Fed has all but said we should be in risk assets – that’s what they’re saying by promising to keep interest rates low through 2014. I think we have a green light for stocks for quite some time,” says Insana.
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Trader disclosure: On Jan 26, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long XOM; Terranova is long TRLG; Terranova is long CNX; Terranova is long SBUX; Terranova is long SNDK; Terranova is long CSCO; Terranova is long VRTS; Terranova is long LQD; Terranova is long MUB; Terranova is long EMC; Terranova is long AXP; Terranova is long F; Terranova is long JOY; Terranova is long MCD; Terranova is long OXY; Terranova is long MCD; Terranova is long OXY; Terranova is long IBM; Terranova is long SU; Terranova is long MA; Seymour is long F; Seymour is long AAPL; Seymour is long BAC; Seymour is long CIB; Najarian is long AKS; Najarian is long BAC; Najarian is long PNC; Najarian is long WFC; Najarian is long GDX; Najarian is long NFLX; Najarian is long MSFTl Najarian is long IBM; Finerman is long (JPM); Finerman is long (BAC); Finerman is long (PLCM); Finerman is long (IBM)
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