On Monday, investors were trying to make sense of the market, after an early rally fizzled and stocks closed in negative territory.
Initially word that Spain had accepted a bailout from the EU boosted investor sentiment and the S&P popped but investors quickly took profits and by the close the market was in the red.
“That’s the way to game this market,” says trader Mike Murphy. “You’ve got to sell the rips.”
Murphy as well as the other Fast Money traders believe the market is range bound. But they also say it’s a tradable market.
That means in addition to selling the rips, traders are buying the dips. However, not yet.
Trader Guy Adami thinks the market probably has more downside. “I think we test 1292 sometime this week,” he says.
However, if and when we do, Adami and Murphy both say watch the action - if the market holds, that would be the time to hit the buy button.
And if you’re looking for some single stock suggestions – Murphy says look at Cummins and United Rentals . “I expect tradable moves in both names,” he says.