Position for Market Melt-Up into Election Day: Top Strategist

As you prepare for the fall, you might want to pick up some cyclical stocks.

So says, Tom Lee, chief equity strategist at JPMorgan.

Lee raised his forecast for the S&P on Friday convinced that by Election Day the S&P will print 1475.

Lee sees a string of catalysts in the market all of which, he says, are bullish.

However of all the catalysts he mentioned on CNBC’s Fast Money Halftime Report – the pros found his cyclical 'buy' signal extremely intriguing.

“Cyclicals now trade at a 41% discount to defensives,” says Lee. (That would be expected as investors have sought the safety of defensive stocks that pay dividends.)

“That’s the biggest discount in 40 years. Of the past 7 times we saw this extreme, 6 of those times you made money buying cyclicals,” says Lee.

You can hear 3 other reasons Lee cited for a rally in the video above.

Posted by CNBC's Lee Brodie

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 August 17, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Jon Najarian is long AAPL CALL SPREADS; Jon Najarian is long CPN CALL SPREADS; Jon Najarian is long CSCO CALL SPREADS; Jon Najarian is long GLD CALL SPREADS; Jon Najarian is long NLFX CALL SPREADS; Jon Najarian is long NRG CALL SPREADS; Jon Najarian is long STLD CALL SPREADS; Jon Najarian is long YHOO CALL SPREADS; Jon Najarian is long VIX CALL SPREADS; Jon Najarian is long STSI; Jon Najarian is long CBOE; Jon Najarian is long CME; Jon Najarian is long GLUU; Pete Najarian is long AAPL CALLS; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Steven Weiss is long DE; Steven Weiss is long TCK; Steven Weiss is long AAPL; Steven Weiss is long QCOM; Steven Weiss is long HAIN; Steven Weiss is long HK; Steven Weiss is long TBT; Josh Brown is long AAPL; Josh Brown is long WFC; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long SBUX; Josh Brown is long GPS

For Tom Lee
Nothing to Disclose

For Dennis Gartman
Nothing to Disclose

CNBC.com with wires.