Central bank stimulus and crude oil price have added an element of confusion to the stock market, but equities remain poised to head higher, Joe Terranova of Virtus Investment Partners said Monday.
The Bank of Japan announced massive monetary stimulus measures on Friday, sending stocks toward all-time highs last week.
related investing news
"You have to ask yourself if the Santa Claus rally came in the form of a Halloween treat," Terranova said on CNBC's "Halftime Report."
Over the past 25 years, the S&P 500 has experienced an average 5 percent surge in stock prices from November to January, a phenomenon dubbed a "Santa Claus rally."
Read More Trader likens Japan stimulus to Bear Stearns event
Terranova said he was surprised by the S&P 500's ability to return to its previous highs.
"Ultimately, it all comes back to central bank policy," he said, adding that Japan's stimulus had "caught everyone short."
"You also have to factor in that oil continues to hover around $80. And everyone looks at oil around $80 and they say, 'Well, the S&P is not going to go up with oil trading around $80,'" he said. "And it's got everyone massively fooled, and I think that's where right now the mentality, the investment mentality, and the traders in the hedge-fund space you talk to right now is complete confusion. But central banks will continue to thrust the market higher."
Read More Apple stock going to $120 per share: Pro
OptionMonster's Pete Najarian said that quarterly earnings results, which roughly three-fourths of the S&P 500 companies have reported, took stocks higher.
"When the focus goes back on the actual numbers, it seems like the markets go higher," he said, adding that is low once again. "Protection is cheap. The market can definitely go higher."
Stephen Weiss of Short Hills Capital joked, "Man, the nerve of those investors letting things like Ebola, China falling off a cliff, Europe collapsing distract them. That's terrible."
Weiss added that he was still long on U.S. growth, despite negative headlines.
Read MoreCitigroup stock's 'like free candy at these prices': Mike Mayo
"The market sells off on that news when it first hits, and then it recovers and focuses on where it should, which is the U.S. because the U.S. is the strongest market because it's the strongest economy," he said. "I still think you want to be long the U.S. market, keep a little cash for events that happen like we saw mid-month again because they will happen again and you can buy them cheaper."
Rosecliff Capital CEO Mike Murphy brushed off the idea that the stock market was pulling forward next year's growth.
Read MoreContrarian fund manager's top 3 stock picks
"The spike up on the right-hand side of the V matches the spike down on the left-hand side. So, we're just back to where we were a month ago on the S&P, right. I don't think we're really pulling anything forward. I think that we had a liquidity crisis in a lot of names, spooked the market, and add in China, Ebola, all the other things out there," he said. "I think it's a quarter that deserves to get this kind of spike in the market, and I still believe the market has upside."