Pro trader: chase for performance to drive year-end rally

Strong economic data sent both the S&P and Dow exploding higher Wednesday.  Are the bulls off to the races? Or was Wednesday’s market action 2010’s last moment of glory? Instant Insights

with the Fast Money traders Guy Adami suggests keeping a close eye on _technicals_. "1173 is a key level in the S&P," he says. "It held like a rock and I think investors

now have a defined stop. However, I can’t help but worry at some point the market takes a turn for the worse." Joe Terranova thinks that the strong economic data may continue to buoy

the market and excite investors. "If Friday's jobs reports shows private sector job growth is better than expected I think this rally could have legs," he explains. CNBC

contribution editor Gary Kaminsky tells the desk to look for a chase for performance largely because of a relative underperformance by mutual funds. “In the end of August we had the highest

number of mutual funds underperforming their benchmark in almost a 20 year period,” he says. In other words, there’s a population of money managers underperforming and he thinks they will be

aggressively trying to catch up to the market. "I can’t imagine anything happening to change that though the end of the year." And Joe Terranova, says money mangers won’t have the

entire month to play catch up. "They really only have until the _middle of the month_," he adds, suggesting the rally should continue in the short-term. Meanwhile, on the Halftime

Report Todd Gordon of Forex.com told the desk he remains skeptical of the rally. Gordon thinks Australia should be confirming this rally and its _not_. ”The euro was up .75% while the

Aussie group against the rest of the G10 was up .25%, he explains. "I take that to mean the European bounce was nothing more than a short covering rally. The weakest currency was up the

most. If it were a true risk-on rally the Australian group should be up, much more.” ”And to take it a step further – look at the safe haven currencies such as the yen and the Swiss

franc," Gordon adds. "They should be down much more if the rally is for real.” What do you think? We want to know! ------ MATERIALS AND INDUSTRIALS Like so many of this year's

biggest market rallies and selloffs, the action began in China. Investors bid commodities higher after new data showed that nation’s purchasing manufacturing index or PMI rose to a 7 month

high in November, beating expectations, with output and export orders fueling the rise. Investors considered the trend bullish; interpreting results to mean that Chinese demand for materials

and resources was getting stronger. What’s the trade? In the space I’d look at Honeywell and Cooper Industries, says Guy Adami. I don’t like the broader market but I like these names. I

added to my exposure in Freeport McMoRan, adds Joe Terranova. I think the 2011 trade is long copper. ______________________________________________________ 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 . _Trader disclosure: On December 1, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast

Money" traders; Pete Najarian owns (WFT) call spread. Pete Najarian owns (MEE) call spread. Pete Najarian owns (F) bonds. Pete Najarian owns (GDXJ) call spreads. Pete Najarian owns

(GRS) calls. Pete Najarian owns (TCK) call spread. Pete Najarian owns (C), (PFE), (CNI) and (DOW). Karen Finerman owns (AAPL) and (BAC). Joe Terranova Owns (FCX), (UPL), (C), (PEP), (VRTS),

(OXY), (AXP), (GS), (POT), (AAPL), (NKE) and (OIH). Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC) and (MSFT). Stephen Weiss owns (VZ), (MEE), (UPS), (JWN), (QCOM), (TBT), (COP) and

(DVN). Steve Cortes is short (UNP). Steve Cortes owns (GS), (MS), (BAC) and (CME). Steve Cortes is short German DAX. Steve Cortes is long U.S. Dollar vs. Mexican Peso, Euro, Australian

Dollar Steve Cortes is long U.S. 2-year treasury notes._ _KAREN FINERMAN Finerman’s firm owns (BKS) Finerman & Finerman’s Firm owns (JPM) Finerman & Finerman’s Firm owns (MSFT)

Finerman’s firm is short (IJR) Finerman’s firm is short (MDY) Finerman’s firm is short (SPY) Finerman’s firm is short (IWM) Finerman’s firm owns S&P 500 and Russell 2000 puts_ _JOE

TERRANOVA Terranova is Chief Market Strategist of Virtus Investment Partners, LTD Virtus Investment Partners Owns More Than 1% Of (ABAX) Virtus Investment Partners Owns More Than 1% Of (ALK)

Virtus Investment Partners Owns More Than 1% Of (AMKR) Virtus Investment Partners Owns More Than 1% Of (CCG) Virtus Investment Partners Owns More Than 1% Of (CASS) Virtus Investment

Partners Owns More Than 1% Of (CSVI) Virtus Investment Partners Owns More Than 1% Of (EPR) Virtus Investment Partners Owns More Than 1% Of (EXR) Virtus Investment Partners Owns More Than 1%

Of (FCFS) Virtus Investment Partners Owns More Than 1% Of (IGE) Virtus Investment Partners Owns More Than 1% Of (KRC) Virtus Investment Partners Owns More Than 1% Of (LDR) Virtus Investment

Partners Owns More Than 1% Of (LPHI) Virtus Investment Partners Owns More Than 1% Of (MGRC) Virtus Investment Partners Owns More Than 1% Of (NRCI) Virtus Investment Partners Owns More Than

1% Of (DBV) Virtus Investment Partners Owns More Than 1% Of (XLB) Virtus Investment Partners Owns More Than 1% Of (XLV) Virtus Investment Partners Owns More Than 1% Of (XLP) Virtus

Investment Partners Owns More Than 1% Of (XLY) Virtus Investment Partners Owns More Than 1% Of (XLE) Virtus Investment Partners Owns More Than 1% Of (XLI) Virtus Investment Partners Owns

More Than 1% Of (XLK) Virtus Investment Partners Owns More Than 1% Of (XLU) Virtus Investment Partners Owns More Than 1% Of (SUBK) Virtus Investment Partners Owns More Than 1% Of (WDFC)

Virtus Investment Partners Owns More Than 1% Of (YDNT) Virtus Investment Partners Owns More Than 1% Of (CLB) Virtus Investment Partners Owns More Than 1% Of (DRYS)_ _GUY ADAMI Adami’s wife

works at Merck_ _MIKE KHOUw Cantor Fitzgerald makes a market in (AAPL) Cantor Fitzgerald makes a market in (ALTR) Cantor Fitzgerald makes a market in (ANR) Cantor Fitzgerald makes a market

in (ARMH) Cantor Fitzgerald makes a market in (BAC) Cantor Fitzgerald makes a market in (C) Cantor Fitzgerald makes a market in (CSCO) Cantor Fitzgerald makes a market in (DDAIF) Cantor

Fitzgerald makes a market in (F) Cantor Fitzgerald makes a market in (FCX) Cantor Fitzgerald makes a market in (FDX) Cantor Fitzgerald makes a market in (GM) Cantor Fitzgerald makes a market

in (JPM) Cantor Fitzgerald makes a market in (LLTC) Cantor Fitzgerald makes a market in (MEE) Cantor Fitzgerald makes a market in (MOT) Cantor Fitzgerald makes a market in (MSFT) Cantor

Fitzgerald makes a market in (NVDA) Cantor Fitzgerald makes a market in (QCOM) Cantor Fitzgerald makes a market in (RIMM) Cantor Fitzgerald makes a market in (TSN) Cantor Fitzgerald makes a

market in (TXN) Cantor Fitzgerald makes a market in (UPS) Cantor Fitzgerald makes a market in (VZ)_ _DENNIS GARTMAN Funds managed by Gartman own (MSC), Funds managed by Gartman own (RJA)

Funds managed by Gartman own (BPT) Funds managed by Gartman are short (DB) Funds managed by Gartman are short the S&P 500 Funds managed by Gartman are short the Euro Funds managed by

Gartman are short the Japanese Yen Funds managed by Gartman own Gold_ _BRIAN KELLY Accounts Managed By Kanundrum Capital Own (GLD) Accounts Managed By Kanundrum Capital Own (GDXJ) Accounts

Managed By Kanundrum Capital Own (SLV) Accounts Managed By Kanundrum Capital Own (JPM) Accounts Managed By Kanundrum Capital Own (C) Accounts Managed By Kanundrum Capital Own (WFC) Accounts

Managed By Kanundrum Capital Own (RDC) Accounts Managed By Kanundrum Capital Own (ARMH) Accounts Managed By Kanundrum Capital Own (AAPL) Accounts Managed By Kanundrum Capital Own (FCX)

Accounts Managed By Kanundrum Capital Own (QCOM)_ CNBC.com and wires