On Monday the Fast Money traders were trying to determine if the right trade was long into month’s end.
Both the S&P and Dow traded sharply higher after German Chancellor Angela Merkel and French President Nicolas Sarkozy promised to unveil a comprehensive new package to ease the euro zone's debt crisis, though details won’t be made public until the G20 summit which is scheduled to begin Nov 3rd.
”I don’t think they would have said something like that unless they really have something,” says pro trader Stephen Weiss.
It seems a lot of other pros share his opinion.
Bulls drove the S&P 500 above its 50-day moving average for the first time since late July, a bullish technical signal. The S&P 500 is now up more than 10 percent from a low last Tuesday that took the index briefly into a bear market.
Will momentum take the S&P higher? Should you buy stocks and stay long into months end?
Instant Insights with the Fast Money traders
Most of the Fast Money traders think the path of least resistance, at least for the time being is higher.
Although the details forthcoming from Merkel and Sarkozy will make the G20 summit extremely important, the meeting isn’t for a few weeks and in this market that’s a lifetime, says Tim Seymour. "And the S&P breaking above its 50-day, is bullish."
”Hope should keep the market afloat and that suggests a risk-on rally,” adds Brian Kelly.
Even the skeptical Stephen Weiss agrees. “Yes, I would stay long into the end of the month. I think we're ok for the next two weeks."
The usually bullish Joe Terranova thinks the market could potentially explode. “I think it’s time to re-price the market,” he says. Terranova doesn’t think we’re going to see Europe implode nor does he expect recession. "And now shorts are being unwound."
In addition Terranova sees the potential for very good technicals, too. “I think we could see an outside reversal on the month of October. In other words we could make a lower low in October than we made in September but then we take out the September high of 1229. That would be incredibly bullish.”
Only trader JJ Kinahan is worried. “I’m nervous about the market because I don’t think the companies will paint a shiny picture of the economy during earnings season and it kicks off Tuesday with Alcoa.”
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Trader disclosure: On Oct 10, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns AKS; Seymour owns BAC; Seymour owns INTC; Seymour owns POT; Terranova is long VRTS; Terranova is long LQD; Terranova is long MUB; Terranova is long FCX; Terranova is long TBT; Terranova is long OXY; Terranova is long HOS; Terranova is long F; Terranova is long LULU; Terranova is long OIH; Terranova is long CAT; Terranova is long AXP; Terranova is long EMC; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM; Terranova is long Silver December $40 puts; Weiss is long RIMM; Weiss is long QCOM; Weiss is long HPQ; Weiss is long EUO; Weiss is long NIHD; Weiss is long COP; Weiss is long KEG; Weiss is long YHOO; Kinahan is short SPY thru options; Kinahan long CSCO; Nations is long SPY
For Brian Kelly
Funds managed by Brian Kelly are long IBM
Funds managed by Brian Kelly are long QCOM
Funds managed by Brian Kelly are long GLD
Funds managed by Brian Kelly are long AAPL
Funds managed by Brian Kelly are long LO
For Chris Verrone
For Dennis Gartman
Gartman is short S&P
Gartman is long gold
Gartman is long of gold/short of the EUR
Gartman is long of gold/short of the Sterling
Gartman is long of gold/short of the Yen
Gartman is long wheat
Gartman is long soybeans
Funds managed by Gartman are long gold
Funds managed by Gartman are long Canadian dollar
Funds managed by Gartman are long Aussie dollar/short of the EUR
Funds managed by Gartman are long Aussie dollar/short of the Sterling
For Josh Brown
For Amelia Bourdeau
For Greg Zuckerman
For David Dunlap
CNBC.com and wires