If you’re among the many investors looking for a big downdraft in the market, should your revisit your thesis, after Wednesday’s price action?
All 10 S&P 500 sectors traded higher, led by the energy, financial and technology sectors , all of which are tied to strong global demand.
In fact, energy had its best day since January, and financials put in its best day over the past 3 months.
Technicals also changed. Bulls were able to push the broad S&P 500 index above 1284 - the 200-day moving average, a closely watched level.
All told, those signals would suggest the market wants to march higher.
However, the woes of Europe are far from resolved. Skeptics argue that the current gains are not sustainable and that only a fool would buy stocks now?
What do you do?
Strategy Session with the Fast Money traders
“I think the ultimate strategy is own stocks,” says Joe Terrranova. “Own franchises that you believe in. For me that’s a company like Whole Foods. Then, have singular protection against it.”
Terranova believes that barring a catastrophe, the path of least resistance in the stock market is higher. He says the latest ISM is proof that the US economy will continue to grow, despite all the drama happening overseas.
Specifically, The Institute for Supply Management (ISM) said on Tuesday its services index edged up to 53.7 from 53.5 in April; economists had expected the index to hold steady at April's level.
A reading above 50 indicates expansion in the sector, which accounts for about two-thirds of economic activity.
If you’re looking for other ideas, Terranova also suggests long positions in regional banks including TCBI and PNC.
Trader Stephanie Link is also a buyer of stocks right now. “If we hear good things in the Beige book and good things from Bernanke later in the week the run could last a while.”
However, she thinks the best strategy is to put dividend paying stocks on the radar and then pull the trigger when the yields become attractive. She likes JPMorgan, Eaton and Ensco .
Trader Mike Murphy sees the market differently. He says when the market rallies like it has on Wednesday, the trade is to sell. However, he also recommends buying when the tape is weak. The way to play this market is “buy red and sell green. Then reload and get ready to buy again.”
Like the title says, trader Steve Grasso thinks you’d have to be a fool to buy stocks now. “This market is currently un-investible. Lock in profits where you can.”
Dennis Gartman sides with Grasso. "Usually bottoms are not formed in a pattern of a 'V' - where you simply slide into oblivion and bounce violently higher. Usually you get a bounce, then the market goes back and tests its lows again and again. I'd have very little exposure to equities."
What do you think? We want to know!
Posted by CNBC's Lee Brodie
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Trader disclosure: On June 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; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long WMB; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long WFM; Joe Terranova is long IBM; Joe Terranova is long CNX; Joe Terranova is long HYG; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long LPX; Joe Terranova is long XNDK; Joe Terranova is short JUNE MINI S&P FUTURES; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Stephanie Link is long JPM; Stephanie Link is long DD
For Steve Cortes
Nothing to disclose
For Scott Mullinix
Scott Mullinix is long FISGX
Scott Mullinix is long CERN
Scott Mullinix is long ALXN
Scott Mullinix is long PRGO
Scott Mullinix is long SBAC
Scott Mullinix is long PXD
For Tony Crescenzi
Nothing to disclose
CNBC.com with wires.