Stocks closed higher Wednesday but trader Dan Nathan doesn't think the upward momentum will continue. Instead, he thinks investors should use the recent strength in the market to lessen their exposures to equities right now.
"It's typical of a bear market rally. I think you are going to see these really sharp countertrend rallies. I think a lot of the factors that made the bull possible over the last few years are really no longer in place here," the co-founder and editor of RiskReversal said in an interview with CNBC's "Closing Bell" Wednesday.
He thinks the only reason the market has rallied about 5 percent from its Friday lows is that investors were "caught offsides." China's market has been closed for the National Day holiday and reopens Thursday, he pointed out. Plus, crude oil has been "given a pass," with no indication that there has been any increase in demand that should have pushed the commodity up as it did, said Nathan, also a "Fast Money" trader.