×

Pros: Enough Momentum to Keep Rally Going?

On Tuesday the S&P posted its biggest gain in nearly two months after retail sales buoyed investor sentiment.

Though still weak, the retail sales data was not as bad as most had expected, and that was enough to send buyers rushing into the market.

"We were so oversold you had to see a plus day," says Alan Valdes, director of floor operations at DME Securities in a Reuters interview.

However, many headwinds remain, including concerns over debt problems in Europe and the United States, along with the expiration at the end of this month of the U.S. Federal Reserve's bond-buying program, which has been a key source of liquidity for markets.

How should you position? What should you be watching?

Instant Insights with the Fast Money traders

Trader Tim Seymour is cautious and speculates that the move higher on Tuesday may have been mostly short covering. He thinks Wednesday’s open will be the market ‘tell.’ “If we break through 1295, then I think we actually get follow through,” he says.

Trader Joe Terranova thinks we may be seeing stabilization in the market. “When I look at the market it’s not so much about needing to quickly re-accelerate. We just need to stabilize," he says. Terranova thinks that's exactly what's happening and points to the Vix . “It’s trading in a very benign fashion. That does not suggest we’re going to wash out further on the downside."

Trader Karen Finerman says it wouldn’t be shocking to see the market trade higher in the face of volatility coming in. “I think we’re going to see the rally continue.”

”I’m on the Ambassador’s team,” counters Guy Adami. “Until we got to 1325 I think rallies need to be sold. He points to bank weakness on Tuesday. “They may be a leading indicator for Wednesday.”

Peter Boockvar of Miller Tabak is very bearish. He thinks the end of QE2 combined with signs of a global slowdown will dominate trade. "It’s wishful thinking not to believe there will be a pullback," he says.






______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our Web site send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On June 14, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (IWM); Finerman's Firm Is Long S&P 500 Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm Owns (BAC) Leap, Finerman Owns (BAC); Finerman's Firm Owns (FXCB); Finerman's Firm Owns (IBM); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT)l Adami Owns (NUE); Adami Owns (BTU); Terranova Owns (VRTS); Terranova Owns (IBM); Terranova Owns (FCX); Terranova Owns (CVI); Terranova Owns (F); Terranova Owns (AAPL); Terranova Owns (CAT); Terranova Owns (BX); Terranova Owns (HPQ); Terranova Owns (MA); Terranova Owns (PEP); Terranova Owns (MCD); Terranova Owns (TM); Terranova Owns (DAR); Terranova Owns (BJ); Terranova Owns (XOM); Terranova Is Short (DELL); Weiss Owns (QCOM); Weiss Owns (SWC); Weiss Owns (JPM); Weiss Owns (EMC); Weiss Owns (ETP); Weiss Owns (NS); Weiss Owns (DVN); Weiss Owns (COP); Weiss Owns (HK); Weiss Owns (TWM); Weiss Owns (MRK); Weiss Owns (HAIN); Weiss Owns (TEVA); Weiss Owns (UUP); Weiss Owns (MSFT); Weiss Owns (CMA); Weiss Owns (GLW); Weiss Owns (PZN); Weiss Is Short (FWLT); Weiss Is Short (FLR); Weiss Is Short (SHAW)

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 (CSVI)
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 (LHO)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of Sun Pharmaceutical Industries Ltd.
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

For Peter Boockvar
***No Disclosures

For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (AAPL)
Cantor Fitzgerald & Co. Is A Market Maker In (AMD)
Cantor Fitzgerald & Co. Is A Market Maker In (AET)
Cantor Fitzgerald & Co. Is A Market Maker In (AXP)
Cantor Fitzgerald & Co. Is A Market Maker In (BAC)
Cantor Fitzgerald & Co. Is A Market Maker In (BBY)
Cantor Fitzgerald & Co. Is A Market Maker In (BCSI)
Cantor Fitzgerald & Co. Is A Market Maker In (C)
Cantor Fitzgerald & Co. Is A Market Maker In (CAR)
Cantor Fitzgerald & Co. Is A Market Maker In (CHKP)
Cantor Fitzgerald & Co. Is A Market Maker In (FCX)
Cantor Fitzgerald & Co. Is A Market Maker In (FIRE)
Cantor Fitzgerald & Co. Is A Market Maker In (FXCB)
Cantor Fitzgerald & Co. Is A Market Maker In (GOOG)
Cantor Fitzgerald & Co. Is A Market Maker In (GS)
Cantor Fitzgerald & Co. Is A Market Maker In (IWM)
Cantor Fitzgerald & Co. Is A Market Maker In (JPM)
Cantor Fitzgerald & Co. Is A Market Maker In (MGM)
Cantor Fitzgerald & Co. Is A Market Maker In (MS)
Cantor Fitzgerald & Co. Is A Market Maker In (MA)
Cantor Fitzgerald & Co. Is A Market Maker In (SOLR)
Cantor Fitzgerald & Co. Is A Market Maker In (SYMC)
Cantor Fitzgerald & Co. Is A Market Maker In (V)
Cantor Fitzgerald & Co. Is A Market Maker In (WBSN)
Cantor Fitzgerald & Co. Is A Market Maker In (WEN)
Cantor Fitzgerald & Co. Is A Market Maker In (WFC)
Cantor Fitzgerald & Co. Is A Market Maker In (XLF)
Cantor Fitzgerald & Co. Is A Market Maker In (YHOO)

For Jim Iuorio
Iuorio Owns (SLV), Is Long (SLV) Puts

For Daniel Ives
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (SYMC)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (CHKP)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (CTXS)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (RVBD)

For Whitney Tilson
Funds Managed By Whitney Tilson Own (JCP) Call Options

For Whitney Tilson Sot/April 13, 2011
Funds Managed By Whitney Tilson Owned (JCP) On 4/13/11






CNBC.com and wires