This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

'Fast Money' Recap: Topping Out?

NEW YORK (TheStreet) -- The broader market sold off sharply as Twitter (TWTR) made a successful public debut. 

On CNBC's "Fast Money" TV show, Dan Nathan, co-founder and editor of riskreversal.com, said a lot of momentum names have been topping out and a pullback to 1,700 in the S&P 500 would be healthy.

Guy Adami, managing director of stockmonster.com, said that 1,740 in the S&P 500 would be an important level for support. He added that the pullback in the Russell 2000 was worrisome, as well as the record level of margin debt at the New York Stock Exchange

Gordon Johnson, managing director of Axiom Capital Management, said the reaction in the stock market following the European Central Bank's decision to cut interest rates is definitely concerning and investors may have been a little too optimistic. 

Sam Hamadeh, CEO and founder of PrivCo, was a guest on the show who said Twitter was priced well and that it will grow into its valuation. As he did on Wednesday's show, he suggested investors wait for the second of the two lock-up periods to expire, on May 14, before buying a big position. He added that in April there might be some form of a follow-up offering, in which investors could consider buying.

Nathan said the stock has incredibly strong growth and is a solid buy in the low $30 range. 

Adami said the stock opened so high because demand is strong, while there is a very small supply of shares. He added that it had nothing to do with fundamentals. 

Disney (DIS) reported solid earnings but traded lower. Adami called the stock a "no touch" until it returns to and holds $67, otherwise it may head to the low-$60s. 

Johnson said he preferred Chinese solar stocks over American solar stocks because the Chinese government is propping them. He would be buying on dips and added that he did not like SolarCity  (SCTY) due to potential accounting issues. 

As a trade, Jon Najarian, co-founder of optionmonster.com and trademonster.com, said he would be a buyer of First Solar  (FSLR) on weakness.

Tesla Motors (TSLA) had another harsh day of trading, down nearly 8% on news of a third car fire. Craig Irwin, an analyst at Wedbush Securities, was a guest on the show who said people need to consider the situations in which these fires are arising from and what would happen with a normal car. In terms of valuation, he said the stock doesn't trade based off metrics, but on strong growth and belief in its future potential. 

Johnson cited expensive valuation multiples and high battery costs as reasons for why he felt the stock was worth only $50. 

Stock quotes in this article: TWTR, DIS, SCTY, FSLR, TSLA, AA, QCOM, LTD, AEQ, RIG, GRPN, AMZN, COST, PCLN, X, CYH, MU, EBAY, WDC 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,519.19 +17.54 0.11%
S&P 500 1,881.68 +6.29 0.34%
NASDAQ 4,156.5630 +29.5960 0.72%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs