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NEW YORK ( TheStreet) -- The broader markets ripped to all-time highs when the Federal Reserve announced it would not cut back on any of its bond-buying efforts.
CNBC's "Fast Money" TV show, Brian Kelly said he was surprised the Fed decided not to taper and noted the central bank is concerned about the fiscal drag on the economy from the sequestration.
Dan Nathan said the market move was a knee-jerk reaction higher, but he doesn't necessarily want to chase the move. At the same, he argued the breakout to new highs was quite powerful.
Guy Adami said that at some point the lack of earnings growth will come into play. He still thinks a short
Caterpillar(CAT) position works.
Mike Khouw expected there to be no tapering because of the poor economic data. He added that stocks no longer look cheap, especially when the economy is not growing, because that means there's no top-line growth.
Gold also jumped on the Fed news and Kelly said investors can continue to own the yellow metal.
Seymour argued that the rally in gold is getting long in the tooth and this is one more move traders are chasing and will eventually get stung.
Tom Lee, chief U.S. strategist at J.P. Morgan, said Wednesday's move proves investors were underweight equities. He added that the Fed's decision will likely set the market up for the rest of the year and likes tech, financials and healthcare. He concluded that investors feel more comfortable in the market with the Fed's accommodation.
Housing starts are up and housing permits are down, according to the most recent data for August. Kelly said home building might start to pick up and Seymour said the data seem good. However, he is looking to fade the recent move higher.
Khouw concurred that fading the homebuilders was a good trade. He added that these stocks are very interest rate-sensitive and the valuations are "far from cheap."
Oracle(ORCL) reported earnings, and Nathan said the stock is a buy near $30 or $31.
Adami said the guidance was lousy and likes the $31.50 level for longs, but warned that if that level doesn't hold, it could head much lower.