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Around S&P 1300, Get Back In: Pro Traders

On Tuesday traders on the floor were starting to question the sustainability of the broad bull rally as the S&P took a sharp turn lower and the Dow tumbled by triple digits.

Again Europe’s financial woes sent investors running for the sidelines; this time chatter suggested Greece may not meet a looming deadline. Just one day earlier,China cut its growth forecast, triggering concerns that the era of China as a great global growth engine was drawing to an end.

Pullbacks are usually considered healthy, but with these new and somewhat bearish developments, how long should you wait until you pull the trigger?

According to top hedge fund manager and Fast Money trader Simon Baker - wait until the S&P trades down to 1300. However at that level, hit the buy button. “I think the pullback is an all- round healthy thing," he says. Baker believes the market just got ahead of itself - nothing more.

Traders Patty Edwards is also bullish - relatively. ”I’m relieved to see the pullback,” Edwards admits. “We got overextended – the market went too far too fast. I think there's more pullback to go -but once it comes , I'd also get back in and start buying again.”

The downdraft in the market could abate sooner rather than later if trader Jon Najarian's comments pan out.

He thinks there are two catalysts coming this week that will surely influence the market and could potentially reverse the negative momentum. “There’s an Apple event on Wednesday and of course employment data on Friday,” he says.

In other words, depending on the specifics, the jobs report and the Apple event – could give bulls new reasons to resume the rally.

If you’re looking for a tell, Jon’s brother Pete Najarian suggests watching the Vix . “Right now it’s spiking – and for the first time since Feb 15th the Vix is over 20,” he says. “However last time we got to these levels, it didn’t last long.” If the Vix falls as quickly as it spikes – Najarian would take it as a sign that there’s not a lot more fear in the market.

What do you think? We want to know!

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Trader disclosure: On March 6, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: P. Najarian is long AAPL; P. Najarian is long C; P. Najarian is long INTC; P. Najarian is long YHOO; P. Najarian is long COP; P. Najarian is long WLT; J. Najarian is long IBM call spreads; J. Najarian is long QCOM call spreads; J. Najarian is long GDX call spreads; J. Najarian is long GDXJ call spreads; J. Najarian is long CRM call spreads; J. Najarian is long FIO call spreads; J. Najarian is long KERX call spreads; Baker is long QCOM; Baker is long GLD; Baker is long SLV; Baker is long MU; Kilburg is long 10yr; Kilburg is long TLT; Kilburg is long GLD; Kilburg is long SPXU; Karabell is long VALE

For Patty Edwards
Trutina Financial is long COST
Trutina Financial is long AAPL
Trutina Financial is long JNK
Trutina Financial is long INTC
Trutina Financial is long QCOM
Trutina Financial is long HLF
Trutina Financial is long WLT

For John Blackledge
I, John Blackledge, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.

For Paul Forward
CONSOL Energy Inc. is provided with investment banking services by Stifel, Nicolaus & Company, Inc. or was provided with investment banking services by Stifel Nicolaus or an affiliate within the past 12 months.
CONSOL Energy Inc. is provided with non-securities related services by Stifel, Nicolaus & Company, Inc. or an affiliate or was provided with non-securities related services by Stifel Nicolaus or an affiliate within the past 12 months.
Stifel, Nicolaus & Company, Inc or an affiliate has received compensation for investment banking services from CONSOL Energy Inc. in the past 12 months.
Stifel, Nicolaus & Company, Inc. expects to receive or intends to seek compensation for investment banking services from CONSOL Energy Inc. in the next 3 months.
Stifel, Nicolaus & Company, Inc. makes a market in the securities of CONSOL Energy Inc..



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