S&P Could See 1,700 in 2013: Pro

With broad participation in the stock rally, the market could keep climbing, JC Parets of Eagle Bay Capital said Tuesday.

The S&P 500 hitting a record high and closing at 1,625.96 for the day, which makes the bull case for stocks continuing toward 1,636 and then to 1,660, he said.

"We don't really see any reason why, if the sentiment remains this bearish, why we can't see 1,700 this year," he said, citing the contrarian indicator.

On CNBC's "Fast Money," Parets noted that the materials, industrials and technology sectors have been underperforming.

"We definitely want to see rotation into some of these underperforming areas if the S&P 500 is going to continue higher," he said. "I think we need participation from the other guys."

Parets also highlighted the percentage of stocks above their 200-day moving average, which he put at 91.6 percent.

"If the entire market is participating and 90 percent of stocks are rallying and are in uptrends, then in all likelihood the market is going to continue higher," he said. "It's very difficult if not impossible for the market to decline if 90 percent of the stocks are in uptrends."

Trader disclosure: On May 7, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Brian Kelly is short GLD; Brian Kelly is long TLT; Brian Kelly is long Treasuries; Brian Kelly is long Gilts; Brian Kelly is short GOLD; Brian Kelly is short SILVER; Steve Grasso is long AAPL ; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MJNA; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is funds long EMC; Steve Grasso is funds long MSFT; Steve Grasso is funds long OXY; Steve Grasso is funds long HPQ; Steve Grasso is funds long NEM; Steve Grasso is funds long ZNGA; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long SBUX; Tim Seymour is long FB; Tim Seymour is long DIS.