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Sell-Off Over, Stock Market Put in December Lows, Say Fast Money Pros

On Monday, investors were trying to get a sense of whether a Santa Claus rally in the S&P was off the table entirely, after negative headines concerning Europe sent investors running for the exits.

Again the credit ratings agencies generated selling with Fitch and Moody's calling the impact of the EU summit into question; Fitch Ratings said the deal to bind Europe's budgets more closely will make little difference. The region will face "a significant economic downturn" as it wrestles with its sovereign debt crisis for another year or more. Moody's said the summit produced "few new measures."

If the market dynamics haven't changed after the EU summit, can there still be an end of year rally? Or is it entirely off the table?

Strategy Session with the Fast Money traders

”What the market wants is progressively positive news out of Europe,” says top hedge fund manager Anthony Scaramucci.

And the fact that we didn’t get it reminds the market that the crisis isn’t going to end quickly.

However, Scaramucci doesn’t think an end of year rally is off the table. Not at all.

“The natural inclination will be to buy into year’s end,” he speculates. Largely Scaramucci thinks Europe will slip onto the backburner and the market will experience a melt-up, albeit a modest one.

Trader Tim Seymour agrees. “I think we may have seen the lows. “I can see the market drifting up on no news,” he says.

Not only does he also expect negative headlines out of Europe to die down, he also thinks the action in the Vix is relatively positive. (In other words it didn't surge higher.) Also he says the next Fed statement could “sound a little like QE3 is coming.”

Trader Guy Adami is also looking for a bounce. He thinks the market is range bound through the end of the year. “We bounced off 1225,” he says. I’d trade that as the low and 1265 as a top.”

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Trader disclosure: On Dec 12, 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 is long AAPL; Seymour is long BAC; Adami owns C; Adami owns GS; Adami owns MSFT; Adami owns INTC; Adami owns AGU; Adami owns NUC; Adami owns BTU; Terranova is long ; Terranova is long SU; Terranova is long CAT; Terranova is long CNI; Terranova is long LQD; Terranova is long MUB; Terranova is long IBM; Terranova is long EMC; Terranova is long SWN; Terranova is long SBUX; Finerman is long AAPL calls; Finerman is long BAC; Finerman is long GLW; Finerman’s firm is long AAPL; Finerman’s firms is long JPM; Finerman’s firm is short IBM calls; Finerman’s firm GLW; Nations is long SPY; Nations is long C

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