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UPDATE: Buy the Bounce or Run for Cover?

You could almost hear the bulls sigh with relief on Thursday, after both the Dow and S&P 500 ended higher for the first time in over a week.

At the open, buyers stepped into the market after new economic data showed the trade deficit shrank unexpectedly in April with our nation selling a record $175.6 billion in goods and services overseas.

The results eased some concerns about a stalled economic recovery, which had been weighing on the market.

But the optimism faded into the afternoon, as jitters about the end of QE2 triggered late selling, with both the Dow and S&P paring some gains by the close.

Considering the S&P is still 4% lower for the month, is the advance a sign that the June swoon is ending or should you take gains ahead of more pain.

Instant Insights with the Fast Money traders

Trader Steve Grasso thinks Thursday's gains are nothing more than an oversold bounce. “You’re talking about 6 or 7 consecutive down days,” he says. In other words the market was due for an up-day. Looking at the technicals, Grasso remains skeptical. “We got just above the 150-day and we stalled.”

And Grasso is also bearish on fundamentals. “I think margins have peaked and the global growth story is in question.” Grasso is particularly concerned about the upcoming earnings season. “I don’t think we’re going to see the margins that we once did, to get the market to this level.”

Tim Seymour also falls in the negative camp. “I think global growth is in a difficult place,” he says. He doesn’t think the bounce is sustainable.

Stephen Weiss is equally cautious. “I’m not certain the market will continue to make gains,” he says. Although Weiss thinks the market may overcorrect again on Friday, he also thinks the next big move is lower.

Guy Adami is incrementally more bullish and suggests Thursday’s bounce may be a positive sign, at least on a relative basis. He thinks the turn higher suggests 1275 could be a tradable bottom in the short term. However he also thinks the market is range bound with 1325 a point of serious resistance.

Joe Terranova agrees that the market may be stabilizing. He thinks the stronger than expected trade data mentioned above suggests global growth remains in tact.

Trader Zach Karabell is probably the most optimistic of the bunch. He reminds the desk that the market has not had a fundamental breakdown. He sees the recent malaise in the market more like a period of quiet rather than weakness. Karabell remains bullish in the long term and thinks sell-offs provide opportunities. That’s not to say you should dive into the deep end. “This is a market where you dip but don’t plunge,” he says.




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Trader disclosure: On June 9, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova ons (MCD); Terranova owns (DAR); Terranova owns (XOM); Terranova owns (KSS); Terranova owns (CVI); Terranova owns (OXY); Terranova owns (TM); Terranova owns (BJ); Terranova owns (DIS); Terranova owns (PFE); Terranova owns (V); Terranova owns (FLX); Terranova owns (JPM); Terranova owns (PEP); Terranova owns (VRTS); Terranova owns (HPQ); Terranova is short (DELL); Terranova is short (AND); Adami owns (AGU); Adami owns (C); Adami owns (INTC); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Grasso owns (AKS); Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (D); Grasso owns (HOV); Grasso owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST); Karabell owns (AAPL); Karabell owns (GS); Karabell owns (GOOG); Karabell owns (RIMM); Weiss owns (UUP); Weiss owns (QCOM); Weiss owns (MSFT); Weiss owns (COP); Weiss owns (DVN); Weiss owns (HK); Weiss owns (EMC); Weiss owns (NS); Weiss owns (ETP); Weiss owns (MDRX); Weiss owns (TEVA); Weiss owns (BRCM); Weiss owns (KEY); Weiss owns (VZ); Weiss owns (MRK);

Brian Kelly
Accounts Managed by Brian Kelly Capital own (GLD)
Accounts Managed by Brian Kelly Capital own (SLV)
Accounts Managed by Brian Kelly Capital own (IWM) puts
Accounts Managed by Brian Kelly Capital own new zealand dollar
Accounts Managed by Brian Kelly Capital own swedisk krona
Accounts Managed by Brian Kelly Capital own canadian dollars

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSWI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & URL PLC
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Anthony Scaramucci
Skybridge is a Fund of Funds Manager
Funds Held May or May not Own the Recommended Securities

For Steve Grasso:
Stuart Frankel & Co and it’s partners own(CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MU)
Stuart Frankel & Co and it’s partners own (MSFT)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own RDC
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own UAL
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners are SHORTS (QQQQ)
Stuart Frankel & Co and it’s partners own (AAPL)
Stuart Frankel & Co and its partners Are Short (AAPL)

For Zachary Karabell
River Twice Capital is short (SPY)
River Twice Capital is short (CAT)





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