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Terranova’s Not Buying Into ‘Election Correction’

A cloud of uncertainty in the market ahead of the U.S. presidential election doesn't bode well for stocks, Joe Terranova of Virtus Investment Partners said Wednesday on CNBC.

"I'm suspicious of the market from the standpoint of, I'm not stepping in just yet and buying this election correction," he said on "Fast Money."

Terranova said he expected the market to move higher in the next three to six months but added that he wasn't jumping in after the first market shake-out since June.

"Until the election, there still remains a tremendous amount of uncertainty, and the markets hate uncertainty," he said.

Mike Murphy of Rosecliff Capital wasn't buying in either, but for different reasons.

(Read More: Facebook's the Top Player in This Metric: Peck)

"I think the technicals in the market have really broken down last week or so," he said.

Murphy said that the S&P 500 had been range-bound between 1,425 and 1,475 — but now the market could be seeing 1,425 as resistance to the upside.

"So I want to see the market above that before I start really allocating," he said.

Murphy said that he bought Facebook puts, calling the stock's recent bounce "overdone — and I think there's downside there."

Written by Bruno J. Navarro, CNBC.com Producer.

Trader disclosure: On Oct. 24, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Weiss is long BAC; Steve Weiss is long QCOM; Steve Weiss is long C; Mike Murphy is long AAPL PUTS; Mike Murphy is long WFC; Mike Murphy is long TGT; Mike Murphy is short FB PUTS; Joe Terranova is long VRTS; Joe Terranova is long SBUX; Joe Terranova is long SWN; Joe Terranova is long TRV; Joe Terranova is long VZ; Joe Terranova is long XOM; Joe Terranova is long CVX; Joe Terranova is long GS; Joe Terranova is long GLW;

For Jordan Rohan
Stifel, Nicolaus & Company, Inc. makes a market in the securities of Facebook, Inc.. Stifel, Nicolaus & Company, Inc. or an affiliate managed or co-managed a public offering of securities for Facebook, Inc. in the past 12 months. Facebook, Inc. is provided with investment banking services by Stifel, Nicolaus & Company, Inc. or was provided with investment banking services by Stifel Nicolaus or an affiliate within the past 12 months. Facebook, Inc. is a client of Stifel, Nicolaus & Company, Inc. or an affiliate or was a client of Stifel Nicolaus or an affiliate within the past 12 months. Stifel, Nicolaus & Company, Inc. expects to receive or intends to seek compensation for investment banking services from Facebook, Inc. in the next 3 months. Stifel, Nicolaus & Company, Inc or an affiliate has received compensation for investment banking services from Facebook, Inc. in the past 12 months;

For Dennis Gartman
Dennis Gartman is short US 10Y Treasuries;
Dennis Gartman is long GOLD;

For Todd Edgar
Todd Edgar is SHORT NEW ZEALAND DOLLAR;
Todd Edgar is SWEDISH KRONER.

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