×

Guy Adami: Near-Term Path of Least Resistance is Higher

Bulls spent Thursday licking their wounds after suffering the worst 3 day stretch in the stock market since World War II.

Again, the financial woes of Europe dragged down the markets with doubts resurfacing about the political will of Italy and Greece to push through tough budget measures.

To make the situation all the more precarious Germany hardened its stand against providing more aid.

Considering recent developments, how should you position now?

Instant Insights with the Fast Money traders

Although he’s broadly bearish Guy Adami thinks the market action on Tuesday signals that a bear market rally is about to get underway. “The S&P bounced off the lows – I would not sell rallies – I think the S&P now wants to go to 1200,” he says.

Joe Terranova also finds the market action in the near-term constructive. However he’s more focused on the action in the dollar and the new found strength after the Swiss National Bank put limites on the Swiss Franc against the euro.

”As a result the dollar index is challenging the 200-day to the upside, something we haven’t seen in months. What happens at 76.20 will probably dictate the future of the market,” Terranova says.

Trader Tim Seymour expects the greenback to march higher. “The dollar doesn’t have any reason to reverse course and I think it absolutely crushes commodities.”

And looking at the long-term, Seymour sees no reason for the market to rally. “There’s nothing that gives me confidence in this market. I just can’t believe the market put in a low on Tuesday.

As someone who largely invests on fundamentals, Karen Finerman says she just can’t feel optimistic until the nations of Europe appear to stem their woes. “We need more clarity from the EU before the market can get over this hump.”




______________________________________________________
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 Sep 6 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL); Seymour owns (BAC); Finerman and Finerman’s firm own (AAPL); Finerman owns (BAC) and Finerman’s firm own (BAC) leaps; Finerman owns (JPM) and Finerman’s firm owns (JPM) stock and (JPM) leaps; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU)

For Dennis Gartman
Funds Managed By Dennis Gartman Own (PGH)
Funds Managed By Dennis Gartman Own (CF)
Funds Managed By Dennis Gartman Own (MCP)
Funds Managed By Dennis Gartman Own (FAX)
Funds Managed By Dennis Gartman Own the Canadian Dollar
Funds Managed By Dennis Gartman Own the Australian Dollar
Funds Managed By Dennis Gartman are short the Euro and the Sterling
Funds Managed By Dennis Gartman Own Corn
Funds Managed By Dennis Gartman are short Soybeans
Funds Managed By Dennis Gartman are short S&P 500 futures
Funds Managed By Dennis Gartman own Aussie Dollar

For Brian Kelly
Accounts managed by Brian Kelly Capital own (TLT) options
Accounts managed by Brian Kelly Capital own (MON)
Accounts managed by Brian Kelly Capital own (MCP)
Accounts managed by Brian Kelly Capital are short (EWG)
Accounts managed by Brian Kelly Capital are short (FXF) options
Accounts managed by Brian Kelly Capital are short (FXE) options

For Rebecca Patterson
** No disclosures

For John Roque
** No disclosures





CNBC.com and wires