The S&P has rallied sharply since last Tuesday with bulls now driving the index above its 50-day.
Are we still stuck in a trading range - or are we gaining momentum higher?
Chris Verrone of Strategas says in this environment there are a few rules you should follow.
"Let's not overstay our welcome on the short side when support at 1100 has proven itself to be very good. And let's not be too bulled up on the long side when there's a lot of resistance around 1230."
Find out why 1230 is very important to watch.
Check out the video now!
* You can find our conversation with Verrone about 12 minutes into this clip
Click here to go to Why This Stock Rally Isn't Signaling a Market Turnaround
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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
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Gartman is long of gold/short of the Sterling
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Gartman is long soybeans
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Funds managed by Gartman are long Aussie dollar/short of the Sterling
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