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'Fast Money' Recap: Riding the Momentum

NEW YORK (TheStreet) -- The S&P 500 extended its winning streak to six straight sessions, finishing higher by 0.41%. The Nasdaq finished up 0.97%.

Guy Adami, managing director of stockmonster.com, said momentum names including Amazon (AMZN), Netflix (NFLX) and biotech stocks still look good on the long side. 

Brian Kelly, founder of Brian Kelly Capital, questioned why the market was not up more on Tuesday after many momentum stocks outperformed the broader market. 

Tim Seymour, managing partner of Triogem Asset Management, said the selloff for momentum stocks seemed "healthy," given how high the valuations were. 

Karen Finerman, president of Metropolitan Capital Advisors, said she is generally a buyer of put options on the SPDR S&P 500 Trust ETF (SPY) when the CBOE Volatility Index (VIX.X) is near or below $13. 

Kelly said he added to his long position in FireEye (FEYE) because the stock rallied on bad news, a sign of a potential bottom. 

Dan Nathan, co-founder and editor of riskreversal.com, made a guest appearance on the show. He said the price action in Netflix concerned him. He was a buyer of the May $370 put options at $14.00. He admitted that the stock could continue higher, so he is keeping a "tight" stop-loss on the position. 

Adami disagreed, saying he would stay long Netflix at current levels. He said investors should stay long Gilead Sciences (GILD) and Amgen (AMGN), adding Gilead should be trading closer to $80. Seymour said to stay long GILD. 

Adami was a buyer of JetBlue Airways (JBLU), although the stock has had trouble staying above $9. The stock has a high level of short-interest and is cheap by valuation. 

Kelly said Tesla Motors (TSLA) looks due for a pullback. He suggesting using the recent move higher to take profits. Seymour worried about Tesla's competition in the future. 

Seymour was a buyer of McDonald's (MCD) over Yum! Brands (YUM), adding Yum! faces stiff resistance near $80. Adami disagreed, saying he would rather be long YUM, instead than MCD. 

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