The S&P 500 will likely top out at 1,725 as details of the Fed's taper becomes known, at which point investors should consider shorting one industrial name, Guy Adami of StockMonster said Tuesday.

"CAT's rallied because the broader market has done well," he said, adding that it could present a short opportunity around $88 to $90 per share. "Each high is a lower high."

Adami also said that he expected that the Federal Open Market Committee would reduce its $85 billion-per-month asset-purchase program by about $15 billion, sending stocks higher.

(Read more: Time to start 'taper' rotation: Joe Terranova)

On CNBC's "Fast Money," Brian Kelly of Brian Kelly Capital said that Caterpillar served as a China proxy.

"Fixed domestic investments was lower than expected," he said. "Caterpillar needs China pumping along, China building new roads, building new buildings."

(Read more: Market expects $15 billion Fed taper soon: CNBC survey)

Jim Lebenthal of Lebenthal Asset Management said that he would continue a long position in Caterpillar.

"If somebody wanted to take profits, I wouldn't get in their way," he added.

Karen Finerman of Metropolitan Capital Advisors said that she wasn't going to trade based on the Fed's monetary policy changes.

(Read more: Jeremy Siegel: 'Some juice left in this market')

"I really can't trade around it," she said. "I would have to be right on, one, what do they do, and two, am I right gauging the market's reaction on what they do? And so, I'm just kind of doing nothing. I feel like a month from now, I'll still own what I want to own. Taper having started or not, I don't know that it'll be so important."

— By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.