Like it has been for months, on Wednesday the market was all about Europe.
And there was enough optimism ahead of a highly anticipated late week EU summit to push the S&P to a third day of gains, albeit on light volume.
As you likely know,euro zone nations are expected to vote on Friday on an agreement hashed out between Germany and France to tighten fiscal controls for member nations.
And the market is pretty much looking for a binary event.
That is, pros either expect the outcome to disappoint and for stocks to sell-off – or they expect much needed clarity and, as a result, an end of year rally.
What's the more likely outcome? Largely the Fast Money pros think its the latter, and that investors will fear being under-invested.
> NEW SLIDESHOW: Slo-o-o-w Money, 10 Top Stocks for the Long-Term Investor
"Higher is where I expect the market to go,” says Joe Terranove. "After the EU meeting I think we break through the 200-day around 1265." Terranova suggests playing IBM long. "I think it has a date with $200."
Tim Seymour also expects the stock market to go higher. “I’d own good companies at good prices,” he says.
Brian Kelly concurs. “It’s different this time," he says. "Europe doesn’t have much choice (but to act). Otherwise every country and every bank will be downgraded.”
As a result, Kelly thinks after the summit there will be a relief rally and chase for performance. “Every time we see Europe move toward stabilization it seems to lift the market. That suggests to me risk is to the upside.
If you're looking for a play he suggests long JPMorgan. "It's best of breed and Jamie Dimon talked about what they're going to earn; his comments weren't as bad as the Street expected. Also we could get some Fed action in housing next week."
Even Dennis Gartman who ultimately thinks the EU will break up is optimistic in the near-term. “They’re going to kick the can down the road and it’s a long road.” And he's putting his money where his mouth is. He's rotating a quarter of his position out of gold and into equities.
What do you think? We want to know!
Got something to to say? Send us an e-mail at firstname.lastname@example.org 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 Web site send those e-mails to .
Trader disclosure: On Dec 7, 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 is long AAPL; Seymour is long BAC; Seymour is long INTC; Seymour is long CSCO; Gartman is long Gold; Terranova is long EMC; Terranova is long SU; Terranova is long NCR; Terranova is long UPC; Terranova is long TRLG; Terranova is long VRTS; Terranova is long LQD; Terranova is long MUB; Terranova is long AXP; Terranova is long IBM; Terranova is long HES; Terranova is long CAT; Terranova is long SWN; Terranova is long CNI; Terranova is long DECK; Terranova is long SBUX; Murphy is long AKS; Murphy is long BAC; Murphy is long BTU; Murphy is long PCX; Stutland is long INTC; Stutland is long IBM ; Stutland is long CSCO and short calls; Stutland is long WMT and short calls; Stutland is long FXE put spread ; Stutland is long EWZ and short call; Stutland has GOOG short put spread; Stutland is long LQD; Stutland has TLT short puts; Stutland is long TIPS; Stutland is long DBA and short calls; Stutland is long AAPL and short calls; Stutland is long MSFT and short calls
For Brian Kelly
Shelter Harbor Capital is long IWM
Shelter Harbor Capital is long EUO
Shelter Harbor Capital is long AUSSIE $
Shelter Harbor Capital is long RRC
Shelter Harbor Capital is long LNG
Shelter Harbor Capital is long CAT
Shelter Harbor Capital is long UK Gilts
Shelter Harbor Capital is long CAF
Shelter Harbor Capital is long Oil
Shelter Harbor Capital is long Corn
Shelter Harbor Capital is long Soybeans
Shelter Harbor Capital is long Rice
Shelter Harbor Capital is short Suisse Franc
For Brian Stutland
Stutland Volatility Group is a market maker holding hedged positions in VIX and VXX underlying and options holding hedged positions in SPY and SPX underlying and options.
For Jeff Palma
Each research analyst primarily responsible for the content of this research report, in whole or in part, certifies that with respect to each security or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers and were prepared in an independent manner, including with respect to UBS, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in the research report.
For John Bollinger
Bollinger has positions in SPY
For Michael Graham
For David Greenberg
For Patrick Doyle
For Peter Schiff
CNBC.com and wires