Lee looked to balance sheets for an important factor.
(Read More: Next 10 Days Could Signal S&P 2012 High: Pro)
"You can really see it in their cash balances," he said. "In the quarter, for instance, cash balances have grown 14 percent year over year. It's a record level now. We're probably going to end the quarter with the largest cash balances in history."
Lee said that companies had been taking inventories down ahead of the "fiscal cliff," which would trigger automatic federal spending cuts in January.
The market would not lose the Federal Reserve "put," he added.
(Read More: Stocks Face 'More Selling Pressure': Joe Terranova)
Lee's year-end target for the S&P was 1,430. He urged holding blue-chip stocks, such as Apple, Starbucks and American Tower.
Brian Kelly of Shelter Harbor Capital was less certain about the market, not buying that any Fed action was a foregone conclusion.
"I'm just saying, given the information I have now, I'd be a little more cautious," he said.
Written by Bruno J. Navarro, CNBC.com Producer.
Trader disclosure: On Oct. 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: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; 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; Brian Kelly is long GLD; Brian Kelly is long SMH; Brian Kelly is long SLV; Brian Kelly is long SPY PUTS; Brian Kelly is short XLF; Brian Kelly is short EWW; Brian Kelly is short EWA; Brian Kelly is short XLV; Josh Brown is long AAPL; Josh Brown is long XBI;
For Martin Pyykkonen
Important Disclosures Ownership & Material Conflicts of Interest: Wedge Securities LLC (the "Firm"); its affiliates (Wedge Partners Corporation); its employees, Research Analysts or members of their families or households (the "Affiliated Entities") may own less than 1% of registered or non-registered securities, options, rights, warrants or futures on any such security the company featured in this report (the "Company"). The Firm may trade in its accounts of its customers. Compensation: The research analyst who authored this report (the "Analyst") does not receive compensation based on the Firm's investment banking revenues or from the Company and has not done so for the past twelve months. The Firm does not have any investment banking relationship with the Company. As such, the firm has not received compensation for investment banking activities in the past twelve months and does not expect to receive compensation for investment banking activities in the next 3 months. The Firm and its Affiliated Entities do not have a consulting or other revenue-generating relationship with the Company in the last twelve months. Position as Officer/Director: The Analyst does not serve as an officer, director, or advisory board member of the Company. The same is true for members of the Analyst's household. Meaning and Distribution of Ratings: The Firm does not publish ratings on covered companies. Price Chart: The Firm does not publish price charts on covered companies. Price Targets: The Firm does not publish price targets on covered companies. Market Making: The Firm does not make markets in any securities.
Got something to to say? Email us at email@example.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our website, email firstname.lastname@example.org.