Halftime Report

Monday - Friday, 12:00 - 1:00 PM ET
Halftime Report

Break Out or Break Down: What’s Mr. Market Telegraphing?


CNBC's Fast Money traders don’t agree on much but lately they all seem to agree on one thing – the stock market is at an inflection point.

But will stocks break out or break down?

Trader Stephanie Link, director of research at TheStreet, is optimistic. She believesearnings results confirm the message telegraphed by the latest , retail sales numbers and more. And that is, the economy is growing – albeit slowly.

She adds that the Street is still very aware that both Mario Draghi and could implement some kind of program – and that too is bullish. In this kind of environment she recommends adding to cyclical exposure via dividend payers. “I like Vale and Emerson,” she says.

Trader Pete Najarian, co-founder OptionMonster.com, largely agrees. “I expect to see investors put money to work on the belief that there’s are gains to be had in solid companies, especially those that pay dividends.”


SEEKING RETURN? Click here for Fast Money's Favorite Dividend Yielders


Trader Guy Adami, managing director of stockMONSTER.com, isn’t so sure.

Solving the Market Melt-up

He says for quite some time the market has been trading very technically and that matters most. The level to watch on the S&P, he says is 1425 – the 2012 high. “If the market fails to break above 1425 – technicians will say it’s a double top – and I can see even a little bad news triggering a sell-off.”

Trader Simon Baker, CEO at Baker Avenue Asset Management, thinks the scenario laid out above is, in fact, the one that’s most likely. “It’s time to take money off the table,” he says. “We’re at the top of the range – and it looks to me like the market is about to fail.”

What do you think? We want to know!

Posted by CNBC's Lee Brodie

Got something to to say? Send us an e-mail at fastmoney-web@cnbc.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 Web site, send those e-mails to .

Trader disclosure: On August 9, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long M; 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; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long EMR; Stephanie Link is long DD; Stephanie Link is long BRCM

For Darren Chervitz
Darren Chervitz is funds long AAPL
Darren Chervitz is funds long YHOO
Darren Chervitz is funds long SINA
Darren Chervitz is funds long LOGM
Darren Chervitz is funds long EXPE

CNBC.com with wires.