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Pros: Big Mistake to Get Out of This Market

Up and down Wall Street investors were looking for stocks to short after comments made by St. Louis Fed Chief James Bullard suggested QE3 was unlikely.

“Markets seem to be looking for some gigantic action. I’m not sure the data warrants that," he said on CNBC.

The commentary hit the market like a bucket of cold water; one day earlier the Street interpreted commentary in the Fed minutes as a sign QE3 was imminent.

However, if QE3 isn't coming, then the market is overbought right?

Not according to three of the Fast Money pros.

Top trader Stephanie Link, director of research at TheStreet, says just because the Fed doesn’t move doesn’t mean Mario Draghi and the ECB won’t act. Nor does it meanBeijing isn’t about to hit the gas.

Considering those potential catalysts, she says it would be a mistake to short the market. “We're definitely not getting short. In fact, I’m looking for opportunities to buy.”

Trader Mike Murphy, founder and managing partner at Rosecliff Capital, agrees.

He thinks growing rhetoric that QE3 is not coming may be a bullish sign - that the Street may take inaction from the Fed as a sign the US economy can stand on it own. And considering all the headwinds, that's pretty good. “I'm looking for the S&P to break out,” he admits. “I think we’re going to 1450.”

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Trader Simon Baker, CEO at Baker Avenue Asset Management, shares the sentiment.

He says the biggest mistake any investor can make is to stay on the sidelines. “Right now the risk levels are such, that I want to be in the market. The Vix is low and the indicators are positive. The mistake would be – to stay out of the market.”

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Posted by CNBC's Lee Brodie

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Trader disclosure: On August 23, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WY; Brian Kelly is long SPY Puts; Brian Kelly is short SPY; Simon Baker is long AAPL; Simon Baker is long INTC; Simon Baker is long WMT; Simon Baker is long PBI; Michael Murphy is long WFC; Michael Murphy is long LNG; Michael Murphy is long HTZ

For Will Duff Gordon
Nothing to disclose





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