NEW YORK (TheStreet) -- The S&P 500 continued its rally, closing higher by 1.09% after the Federal Reserve released its Federal Open Market Committee minutes.
On CNBC's "Fast Money" TV show, Guy Adami, managing director of stockmonster.com, said the market bounce seems perfectly rational and could continue.
Dan Nathan, co-founder and editor of riskreversal.com, said some of the momentum names such as Facebook (FB) could rebound and make new highs. However, stocks such as Pandora (P) and Yelp (YELP) may never make new highs.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, pointed out the S&P 500 has remained rangebound between 1,845 and 1,885 since mid-February.Karen Finerman, president of Metropolitan Capital Advisors, was unimpressed with the bounce in many names, such as United Rentals (URI), considering the selloff many stocks had over the past few weeks. Robert Peck, managing director at SunTrust Robinson Humphrey, said online advertising volumes have remained stable while ad pricing has gone up quarter over quarter. This is a direct benefit to a company such as Facebook, he said.
Advertisers are getting a higher return on investment for their ad dollars and so they are willing to spend more. Peck forecasts Facebook will generate $2.4 billion in revenue and have 50% margins next quarter. Najarian said he likes Facebook but is waiting for a pullback to buy after its strong rally on Wednesday.
After the two-day rally, the panel was searching for stocks to sell on the strength:
Najarian was a seller of Caesars Entertainment (CZR) and Nathan was a seller of Yelp, although he admitted it could move higher in the short term. Finerman was a seller of the broader market via the SPDR S&P 500 Trust ETF (SPY) and Adami was a seller of International Business Machine (IBM).