Investors need to ask themselves why the market is climbing even as little has changed fundamentally, Joe Terranova of Virtus Investment Partners said Monday on CNBC.
"Why is the market here? It should be lower given all the fundamentals going on in the marketplace right now," he said. "That tells you there's something going here psychologically that goes beyond the negativity that you see out of D.C.
"Maybe the Street is smarter that we expect, but you are seeing a little bit of a lift, and any market that's quiet, you never sell it."
U.S. manufacturing fell in November and earnings estimates have been falling about 1 percent per week, noted Josh Brown of Fusion Analytics, but there were other factors at play.
"Short-term traders are really nervous about fading a Santa Claus rally," he said.
"We're really not in a fundamentally great climate, so if you're a sentimental trader, have fun. But if you're a fundamentals guy, you've probably lightened up already."
TheStreet CIO Stephanie Link said she would've expected the market to trade higher, given positive PMI numbers form China and Brazil.
"I actually think that the economy is getting better," she said.
Baker Avenue Asset Management's Simon Baker said that the market could provide opportunity.
"When you see some real good pullbacks, buy the stock if you like it," he said.
Trader disclosure: On Dec. 3, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long SBUX; Joe Terranova is long VRTS; Joe Terranova is long TJX; Joe Terranova is long AAPL; Joe Terranova is long YUM; Joe Terranova is long SWN; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long VZ; Joe Terranova is long XOM; Simon Baker is funds long IWM; Simon Baker is funds long MDY; Simon Baker is funds long BAC; Simon Baker is funds long F; Simon Baker is funds long HD; Simon Baker is funds long JNJ; Simon Baker is funds long MRK; Simon Baker is funds long MSFT; Simon Baker is funds long QCOM; Josh Brown is long JPM; Josh Brown is long WFC; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long COST.
