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Market up for wrong reason: Adami

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Stocks soared higher Monday thanks to a "bad news is good news" rally, several pros said, but strategist Guy Adami doesn't think the party will continue.

U.S. stocks closed more than 1.5 percent higher, with the Dow Jones industrial average climbing about 300 points.

While many believe that recent disappointing economic data, like Friday's jobs report, pushes a Federal Reserve rate hike into next year, Adami, a CNBC "Fast Money" trader and director of advisory advocacy at Private Advisor Group, said the market may even be looking at another round of quantitative easing coming from the central bank.

"If you look at the numbers out of the U.S. and then you look at the numbers out of Europe, I mean they are dismal at best," Adami said in an interview with "Closing Bell."

"If markets are going to rally on that, that's fantastic but that party ends at some point."

"The market has gone up for the absolute wrong reason," he added.

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Anthony Chan, chief economist at Chase, said the market is telegraphing that this is a Goldilocks economy — not growing too fast but not growing to slow.

He doesn't embrace the idea of QE4, but noted that if it does occur it will "fire up the equity market even more."

However, "my suspicion is once the economy starts to do a little bit better, the Fed will come back in the game," he added.

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Phil Blancato also thinks that the belief that the Fed will be more accommodative is the source of Monday's rally, but he pointed out that the fundamentals are better than people assume they are.

He believes the consumer is stronger and the labor market will tighten enough to force wages higher. However, there still isn't any real inflation, and that will give the Fed a reason to hold off on hiking rates.

"For now, they don't have both mandates. They have labor where they want it but they don't have inflation where they want. For that reason they can back off, let it heat up and still look like they are doing the right thing," the CEO of Ladenburg Thalmann Asset Management said in an interview with "Closing Bell."

Jim Bianco, president of Bianco Research, believes the weak payroll number pushes a Fed rate increase until the spring.

"The market is celebrating more cheap money at least for the next six months," he said.

However, he's not buying into this market now, noting that earnings are still a "big question mark." He said investors should get used to the market moving 200 to 300 points a day, and thinks stocks will ultimately end the year where they are now or slightly lower.

Meanwhile, Quincy Krosby, market strategist at Prudential Financial, is sticking to the old saying "you can't fight the Fed."

"The Fed has trumped technical analysis. The Fed has trumped fundamental analysis. And the job that we have is you've got to deal with the cards you're dealt," she said.

She likes stocks related to the housing recovery like housing stocks and products that fix up homes. She also believes there is a lot of shopping occurring in biotechs right now, noting that this is the season for oncology conferences, which could provide a nice catalyst.

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