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Despite Bernanke, Do Not Short Market: Pros

On Thursday Wall Street was largely disappointed after Ben Bernanke testified before Congress but gave no hints of future QE.

But despite the disappointment, the pros say don’t short the market.

“Bernanke has said monetary policy works best when it’s a surprise,” explains trader Brian Kelly. “It’s entirely possible what the Chairman did on Thursday was a little rope-a-dope and we do get something at the end of June.”

“And if the Europe overhang is removed,” says Zach Karabell, “if there’s any kind of resolution we’re spring loaded to the upside.”

Trader Josh Brown says much the same. “Although there is no clarity, you can not be short this market.”

Tom Lee, JP Morgan Chief U.S. Equity Strategist agrees. In fact he sees plenty of other reasons for the market to climb.

“Gasoline is falling and housing data is much stronger,” he says. Two very bullish catalysts. “And stocks are cheap relative to other assets.”

Looking at the state of the economy, “The European situation is grim and going to be grim for a while,” Lee concedes, “but industrial orders haven’t slammed into a wall.”

By and large Lee and the Fast Money traders all think the market is oversold and pricing in a worst case scenario that extremely unlikely.

In fact, Lee is so bullish that not only does he say ‘don’t short the market’, but he thinks it’s a mistake to be too conservative and buy quality and defensive names. Instead he says the trade is long US cyclicals and financials as a bet on recovery and growth.

By year’s end Lee’s S&P target is 1430.

What do you think? We want to know!

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Posted by CNBC's Lee Brodie

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Trader disclosure: On June 7, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Stephen Weiss is long MSFT; Stephen Weiss is long JOYG; Stephen Weiss is long QCOM; Stephen Weiss is long AIG; Stephen Weiss is long CMI; Stephen Weiss is long JCP; Brian Kelly is long USG CALLS; Josh Brown is long LULU



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