NEW YORK ( TheStreet) -- While tech closed in the red, the broader market jumped higher on news that Lawrence Summers will not be nominated as chairman of the Federal Reserve by President Obama.
On CNBC's "Fast Money" TV show, Brian Kelly pointed out gold spiked on the Summers news before falling, with equities having a weak close. He added the pace of Fed bond tapering would be important to the market and the coming debt ceiling debate would likely weigh on equities.
Guy Adami said steel has been performing well and U.S. Steel (X) seems to have gotten off the $17.50 support level. He added that the S&P 500 may have another 15 points of upside, but that the rally is getting long in the tooth.
Karen Finerman said trading around the FOMC meeting is hard because of two things: the actual outcome of the meeting and the perceived outcome leading up to the event.Kelly does not like the risk to reward ratio for going long big banks. This is despite rising interest rates potentially offsetting a shrinking mortgage and refinance business with improved profitability in lending. Adami pointed out that Blackstone Group (BX) was up almost 4% on Monday and thinks there is still a bit more upside. Outerwall (OUTR) cut its third-quarter profit and sales guidance. Dan Nathan said he would avoid the name unless investors know that particular market very well. Finerman said she was done with Apple (AAPL), even though the valuation is compelling. She said the stock is too volatile and it's too frustrating to own and manage. Adami said the stock could head to the $425 level after closing below the 50-day and 200-day moving average. Kelly said he was looking for these levels before the iPhone event this week, but wants to see Apple reverse and go higher before getting long. Nathan said a deal with China Mobile (CHL) is the only real, near-term catalyst, but said it will come eventually. He added that he'd rather buy Apple than the S&P 500. Homebuilders made a strong move higher on Monday and Kelly said he would use the pop to take profits. Adami agreed, saying he would take profits in the SPDR Homebuilders ETF (XHB) and look to buy a pullback or breakout over $32.