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Stocks Beginning Slow & Steady Melt-Up?

With the Dow hitting its highest levels since December 2007, are bulls off to the races? Or is the market facing a the proverbial cruel summer?

Optimism prevailed after new data showed the pace of growth in theU.S. manufacturing sector picked up in April to its highest level in 10 months.

Investors took the data as a sign the economy had remained somewhat resilient, despite challenges.

However, the bullish market action may be somewhat deceptive – many European markets were closed Tuesday for the May Day holiday – and lately economic headwinds have come from overseas.

What should you make of it?

"I would not sell in May and go away," says trader Pete Najarian. The action tells me there's plenty of opportunity in the market. Najarian is particularly impressed with the action in big cap tech and industrials , two sectors that many bulls believe could drive the next leg.

Trader Brian Kelly agrees. He too is focused on the strength in technology . “Companies are using technology to increase productivity,” he says. That alone should be a catalyst for the sector.

And Kelly adds that investors are so focused on Europe, waiting for the next shoe to fall, that they may be missing something else pretty big - a slow and steady melt-up.

Trader Patty Edwards says much the same. She believes that trade right now is to be in the stock market “until the market sends signals to suggest otherwise."

Although he’s holding some long positions, trader Steve Cortes is far more cautious. He points to negative commentary from the CEO of Emerson Electric, which was bearish. (The company said Europe, China and Brazil were all under pressure.) Cortes take the results as yet another sign that trouble lurks.

Trader Stephen Weiss shares the skepticism. He too is long stocks such as US Steel and ArcelorMittal but only for a short-term trade off ISM. He reminds the desk that Europe was largely closed for the holiday. “I don’t think the economic news out of Europe will be great this week – and Cummins signaled weakness in EM.”

What do you think? We want to know!

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Trader disclosure: On May 1, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long MS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long SBUX CALLS; Pete Najarian is long SBUX; Pete Najarian is long COP, SELLING OUT INTO BP TODAY; Pete Najarian is long PEP; Pete Najarian is long TXN; Steve Cortes is long MO; Steve Cortes is long PPH; Steve Cortes is long PFE; Steve Cortes is long XLE; Steve Cortes is short XLF; Steve Cortes is short SILVER; Steve Cortes is short EUR/JPY; Patty Edwards is long for clients HOF; Patty Edwards is long for clients CVX; Patty Edwards is long for clients PVH; Patty Edwards is long for clients QCOM; Patty Edwards is long for clients INTC; Patty Edwards is long for clients MSFT; Patty Edwards is long for clients COP; Patty Edwards is long for clients WLT; Patty Edwards is long for clients ACI; Brian Kelly is long SPY; Brian Kelly is long QQQ; Brian Kelly is long IWM; Brian Kelly is long KRE; Brian Kelly is long USG; Brian Kelly is long CAD; Brian Kelly is long TBT; Brian Kelly is long SOYBEANS; Brian Kelly is short GERMAN BUND; Brian Kelly is short YEN

For Fadel Gheit
Nothing to disclose

For Stacy Ragson
Bernstein currently makes a market in the following companies INTC
Bernstein currently makes a market in the following companies, QCOM
Bernstein currently makes a market in the following companies BRCM

For Will Landers
Will Landers is long VALE
Will Landers is long ITUB
Will Landers is long PZE
Will Landers is long AMX
Will Landers is long ABV

For Jon Najarian
Jon Najarian is long GRPN

For Steve Weiss
Steven Weiss is long X
Steven Weiss is long MT

For Anthony DiClemente
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Barclays Bank PLC and/or an affiliate trades regularly in the securities of EXPE
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