Follow Fink 100% into Stocks? Not Now - Fast Pros
Again, the odds of a big bull move in the market were all traders could talk about on Friday as the S&P sat just outside the 1350-1370 range, the 2011 highs.
The level is considered a key area of the market, and if bulls can drive the S&P above that level, the belief is that the rally could be somewhat substantial.
Bulls are hopeful, especially after Larry Fink said inpublished reports that investors should be completely in equities – 100%. Fink is an influential figure in the market; he’s the chairman and chief executive officer of BlackRock, one of the largest money-management firms in the world.
With Fink making such an optimistic call, some pros can’t help but wonder if money that’s currently on the sidelines is about to rotate into stocks.
However, if you’re among those investors weighing Fink’s comments, Brian Kelly has a few words of caution.
“Although I don’t necessarily disagree with Fink, at these levels, it’s not the place to buy stocks hand over fist. I’d be cautious. There could be negative surprises and the market could get very nervous.”
Trader Stephen Weiss adds that it’s probably not a good idea to be 100% in anything. “I’m about 75% net long equities,” he says. But he agrees with Fink who says bonds are fully valued and when that happens money goes into equities.
If you’re a trader Brian Stutland suggests taking Fink’s comments with a grain of salt. “I’m still looking for a 4-5% up move in the market – I think the market still has some legs – but after that I’d reassess.
Trader Steve Cortes just can’t get on board, at all. "Saying that now is the time to be all in, that’s poor advice,” he says,
Cortes points to action in the bond market, to confirm his thesis. He believes the low yields are a sign that investors are not willing to embrace risk assets in a big way.
Jeff Kilburg says much the same. He believes yields on the 10-year will slide even lower – which he takes as a sign of risk-off.
And Jon Najarian tells us that options investors are getting nervous. He's seeing a great deal of call buying in the Vix. "If the institutional paper is right, and a move into the mid to high 20s comes to pass, that's a 35 to 50 percent move projected. A volatility move of that sort would normally accompany a drop of up of 10 percent in the S&P 500, so there are some bets/hedges being placed that say things may get dicey in the short-term."
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Trader disclosure: On Feb. 8, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Kelly is long TLT; Kelly is long German bunds; Kelly is long SPY puts; Kelly is short Yen; Cortes is long Treasuries; Cortes is long SO; Cortes is long MO; Cortes is short SOHU; Cortes is short SINA; Cortes is short BAC; Cortes is short EUR; Cortes is short Silver; Weiss is long JWN; Weiss is long EUO; Weiss is long QCOM; Weiss is long DIS; Weiss is long MDRX; Weiss is long F; Weiss is long VZ; Weiss is long WLT; Weiss is long BKU; Weiss is long BKU; Weiss is long MOS; Weiss is long HAIN; Weiss is long KO; Weiss is long WLP; Weiss is long RIMM; Weiss is long ETP; Weiss is long NS; Weiss is short AAPL puts; Weiss is short AMZAN puts;
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