On Wednesday investors were scrambling to place their bets as bulls started floating the idea that the stock market might have bottomed.
The market’s advance was certainly impressive - both the S&P and Dow posted their best days of 2012.
All 10 S&P 500 sectors traded higher, led by the energy, financials and technology , all of which are tied to global growth.
Technicals also looked promising. Bulls were able to push the broad S&P 500 above 1284 - the 200-day moving average, a closely watched level.
Are these early signs of a big stock market rally?
Largely the Fast Money desk does not think so.
“I’m not a believer,” says trader Guy Adami. My instinct is that this is a bounce and that the S&P only has another few handles of upside. I think 1322, a level of past support will generate resistance.”
“I’m not a believer either,” adds trader Brian Kelly. “With the market selling off so much, I think gains were a short covering rally with investors worried about being short ahead of Bernanke’s comments before Congress on Thursday.”
“All-clear, no way!” adds Karen Finerman. “Absolutely nothing has been addressed let alone fixed.”
Trader Mike Murphy thinks the market is somewhat range bound. He says, “sell the rips and buy the dips” until the market tells you otherwise.
Only trader Joe Terranova thinks the path of least resistance may be higher.
“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 the latest ISM number is proof that the US economy will continue to grow, despite all the drama happening overseas.
Trader Guy Adami says the way to tell if the bulls are about to run away with the market is to watch 1325 on the S&P, a few handles above that key 1322 level. "If we can get above 1325 then there’s another 50 S&P handles of upside, easily."
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; Brian Kelly is long QQQ Calls; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long FPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Mike Murphy is long JPM; Mike Murphy is long TGT; Mike Murphy is long X; Mike Murphy is long HAL
For Jim McDonald
Jim McDonald is long GOLD
CNBC.com and wires