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Buy Now or Risk Missing the Next Surge Higher: Pro

The stock market surged on Friday as investors hit the buy button with gusto after the jobs number came in much better than expected and Spanish Prime Minister Mariano Rajoy inched closer to asking for an EU bailout for his country.

The PM’s comments came just one day after the ECB signaled that it was preparing to buy Spanish bonds.

Considering weakness in the market has been pegged to employment and Europe – should you start buying now before you miss the next leg higher?

Top trader Joe Terranova, chief market strategist for Virtus, thinks so.

“I’m long and adding to my longs,” he reveals on CNBC’s Fast Money Halftime Report. Not only does he think developments mentioned above are a sign that big market headwinds are starting to die down but he sees a couple tailwinds coming into the market.

“In the next couple of weeks I wouldn’t be surprised to see the Bank of China move,” he says.

That, he says, would take investors by complete surprise, because right now the Street is much more focussed on the ECB and Fed.

But wait there's more.

Should the scenario play out, Terranova believes money managers will find themselves between a rock and a hard place. “It will force money managers into the market,” he specualtes. “I fully expect to see a chase for performance in the next couple of weeks,” he says.

And then, he says, the market will be off to the races.

In advance of these catalysts Terranova suggests buying industrials and energy.

Trader Steve Grasso thinks Terranova may be onto something. "Technical action suggests that the market's recent highs are back in play." However he concedes the market is still very headline dependent and more negative news could send stocks tumbling.

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 August 3, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Mike Murphy is long SBUX; Steve Weiss is long JPM; Steve Weiss is long CAT; Steve Weiss is long WLP; Steve Weiss is long HAIN; Steve Weiss is long QCOM; Steve Weiss is long HK; Steve Weiss is short AKS; Joe Terranova is long MINI S&P FUTURES; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long USB; Joe Terranova is long GS; Joe Terranova is long JPM; Joe Terranova is long YHOO; Joe Terranova is long SBUX; Joe Terranova is long WFM; Joe Terranova is long AAPL; Joe Terranova is long WMC; Joe Terranova is long NXPI; 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 NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU

For Jeff Kilburg
Nothing to Disclose




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