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Expect ‘Fiscal Cliff’ Sell-Off on Friday: Adami

Thursday, 29 Nov 2012 | 6:11 PM ET

Although stocks closed higher amid Washington lawmakers' "fiscal cliff" talks, Drakon Capital's Guy Adami said Thursday that he expected a sell-off at week's end.

The S&P 500 gained nearly half a percentage point, closing at 1,415.95. The NASDAQ closed 20 points higher, and the Dow was up a quarter of a percentage point.

All of this as lawmakers appeared to be no closer to a budget deal to avoid the Jan. 1 tax hikes and federal spending cuts.

'Fiscal Cliff' Talks Likely to Lead to Sell-Off: Pro
Although the market closed higher Thursday, Drakon Capital's Guy Adami says he expects the market to sell off at week's end.

Adami noted that the S&P had traded down to around 1,384 on Wednesday.

"We talked about 1,379 being the support. It bounced off those levels," he said. "Now, today we traded up to levels that I feel are resistance. And given these headlines, one would think that we sort of sell off tomorrow."

Looking at the S&P's recent range of 1,379 to 1,425, Adami said he saw a sign.

"We're at the upper end of that range," he said. "I think we see a sell-off tomorrow."

Tim Seymour of EmergingMoney.com bemoaned not only the lack of a budget deal, but the stock market reacting to leaked information about budget negotiations published in news reports.

"In fact, the markets are rallying off of this, and this is dangerous," he said.

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

Trader disclosure: On Nov. 29, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long AAPL; Tim Seymour is long INTC; Tim Seymour is long SBUX; Tim Seymour is long GOOG; Karen Finerman is long AAPL; Karen Finerman is long AAPL PUTS; Karen Finerman is long BAC; Karen Finerman is long BAC CALL SPREADS; Karen Finerman is long JPM; Karen Finerman is long JPM CALL SPREADS; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long EBAY; Karen Finerman is long M; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; Steve Grasso is long AET; Steve Grasso is long AKS; Steve Grasso is long ASTM; Steve Grasso is long AUO; Steve Grasso is long BA; Steve Grasso is long CLF; Steve Grasso is long F; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MT; Steve Grasso is long P; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long WYNN; Steve Grasso is long X.

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