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Steve Grasso: Any Market Pop from Debt Agreement Should Be Sold

If you're an investor, chances are you're experienced some serious neck pain Thursday after conflicting headlines about a possible budget deal whipsawed the stock market to and fro.

Around 12:30p ET the New York Times reported that President Obama and Republican House Speaker John Boehner were close to a budget deal. The euphoria on the floor was almost palpable.

Then, about 15 minutes later, CNBC learned lawmakers remained at an impasse, that the earlier report of a deal had been premature.

You can see the flurry of activity in the chart to your right in the 12 o'clock hour.

Fast trader Steve Cortes says sharply conflicting reports involving market sensitive issues such as these makes it very difficult to trade.

“Markets right now are pretty much being driven around like tumbleweeds by headlines.” he says.

And if you think the bulls will be back in business once lawmakers finally reach an agreement on the debt ceiling, think again.

Trader Steve Grasso says “Once the deal comes out, you’re going to see a pop in the market," but adds, "pops should be sold versus bought at these levels.”

In other words he thinks there are so many other headwinds in this market (China, Europe, jobs, bank regulation) that any euphoria from a debt deal will be short lived. Also, he's skeptical that a deal will address the most serious issues facing lawmakers, the future of Medicare, Medicaid and Social Sercurity. All are negative for stocks in the longer-term.

However, if you have a short -term time horizon, until a deal comes out, Grasso thinks the play is long - ahead of the euphoria.

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TIME TO BAIL ON INTEL

In the call of the day the Fast traders look at a note from Nomura which essentially says it’s time to bail on Intel .

Analyst Romit Shah downgraded the stock post earnings. What's behind the bearish outlook?

Watch the video and find out now!




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Trader disclosure: On July 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Cortes is short Copper; Cortes is short (LULU); Cortes is short (LVS); Cortes is short (IYT); Cortes is short Wheat; Cortes is short Corn; Cortes owns (GS); Cortes owns (MS); Cortes owns (EXC); Cortes owns (SVU); Cortes owns (PM); Cortes owns (NWS); Steve Grasso owns (AKS); Steve Grasso owns (AMD); Steve Grasso owns (ASTM); Steve Grasso owns (BA); Steve Grasso owns (BAC); Steve Grasso owns (C); Steve Grasso owns (D); Steve Grasso owns (JPM); Steve Grasso owns (LIT); Steve Grasso owns (LPX); Steve Grasso owns (MAR); Steve Grasso owns (MHY); Steve Grasso owns (NDAQ); Steve Grasso owns (PFE); Steve Grasso owns (PRST); Steve Grasso owns (XHB); Steve Grasso owns (XLB); Steve Grasso owns (XLI)

For Patty Edwards
Edwards Owns (AMZN) For Clients
Edwards Owns (AAPL) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (KO) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (PM) For Clients
Edwards Owns (SYT) For Clients
Edwards Owns (PEP) For Clients
Edwards Owns (QCOM) For Clients
Edwards Owns (LECO) For Clients
Edwards Owns (BMO) For Clients
Edwards is long Gold For Clients
Edwards is long Silver For Clients
Edwards is long Platinum For Clients
Edwards is owns (PM)
Edwards is owns (XLK)
Edwards is owns (FXC)

For Steve Grasso
Stuart Frankel & Co and it’s partners own (AAPL)
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 (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 (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 own (QQQQ)

For Romit Shah
Nomura Securities International Inc. makes a market in securities of (INTC)

For Brent Thill
1. The U.S. equity strategist, a member of his team, or one of their household members has a long common stock position in Microsoft Corp.
2. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: Microsoft
3. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-investment banking securities-related services are being, or have been, provided.: Microsoft
4. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided.: Microsoft
5. Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: Microsoft




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