With Dow Near 13,000, Stay Long or Take Profits?

On Tuesday, all anyone could talk about on Wall Street was the Dow flirting with 13,000.

It’s the first time the blue chip index cross this psychological level since May 2008.

Signs of improvement in the economy and stabilization of Europe's debt crisis have driven the Dow more than 20 percent since late last year. Considering the blue chip index has achieved a relatively important milestone, and it's had a pretty good run already, should you stop and take profits?

Probably not.

Joe Terranova is cautiously optimistic that the level will hold. “Treasurys are printing 2.06,” he says. “I believe that’s a sign of rotation as money comes out of fixed income.”

Brian Kelly adds that the Fed is likely pleased that the Dow is trading at this key psychological level – and you shouldn’t fight the Fed. “Anyone who said QE1 and 2 didn’t work – think again – you print money and you get the stock market higher.”

Dennis Gartman agrees. “I’m still long and don’t see any reason to be anything other than long. The oldest rule in the book is continue to hold onto a winning trade.”

"I think it takes a while to get through, but eventually I also think we go through 13,000," adds trader Stephen Weiss.

If you’re looking for a single stock trade, Terranova suggests long Dow component Alcoa . “It was a laggard last year but it appears all the laggards including BofA, HP and Cisco are all playing a game of catch-up. I’d trade Aloca long against a $9.75 stop.”

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Trader disclosure: On February 14, 2012 , 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 VRTS; Terranova is long IBM; Terranova is long HPQ; Terranova is long MCD; Terranova is long EMC; Terranova is long OXY; Terranova is long SBUX; Terranova is long SWN; Terranova is long MSFT; Terranova is long YUM; Terranova is long TBT; Terranova is long FXE; Terranova is long LPX; Terranova is long LQD

Weiss is long MDRX; Weiss is long DMND; Weiss is long CHK; Weiss is long EUO; Weiss is long CSC; Weiss is long F; Weiss is long BKU; Weiss is long QCOM; Weiss is long NS; Weiss is long POT; Weiss is long SNDK; Weiss is long WLP; Weiss is long VZ; Weiss is short MT

For Brian Kelly
Shelter Harbor Capital is long gold futures
Shelter Harbor Capital is long SLV
Shelter Harbor Capital is long SPY calls
Shelter Harbor Capital is long SPY puts

For Patty Edwards
Trutina Financial is long AAPL
Trutina Financial is long GLD
Trutina Financial is long PGM
Trutina Financial is long INTC
Trutina Financial is long QCOM
Trutina Financial is long COST
Trutina Financial is long HLF
Trutina Financial is long JOY
Trutina Financial is long CBI
Trutina Financial is long VZ

For Dennis Gartman
Gartman is short the Euro, Swiss Franc, Yen
Gartman is long Canadian dollars, Australian dollars & Gold
Gartman owns gold in Yen terms
Gartman owns gold in Euro terms

For Dan Dicker
Dicker is long APA
Dicker is long TOT

For Tim Shea
No disclosures

For Shaw Wu
Sterne Agee makes a market in shares of Dell

For Todd Gordon
No disclosures

CNBC.com with wires.