NEW YORK (TheStreet) -- The Nasdaq slipped 0.03% while the S&P 500 started off the week up 0.32%.
On CNBC's "Fast Money" TV show, Pete Najarian, co-founder of optionmonster.com and trademonster.com, pointed out the outperformance in large-cap stocks such as Chevron (CVX), Microsoft (MSFT) and International Business Machine (IBM) while momentum stocks such as Facebook (FB) continue to underperform.
Anthony Scaramucci, founder and co-managing partner of SkyBridge Capital, said negative investor sentiment has weighed on quality growth stocks. He suggested that Google will be higher from current levels in three to six months.
Steve Grasso, director of institutional sales at Stuart Frankel, said investors should focus on the iShares Nasdaq Biotechnology ETF (IBB). He reasoned that this was the first sector to sell off and will likely be the first one to rally when the momentum selloff is over.
Dan Nathan, co-founder and editor of riskreversal.com, argued there is more room to go on the downside for momentum names. He added that he is covering his short position in Netflix (NFLX).
Najarian said he would continue to "press" Amazon (AMZN) on the short side. He suggested that investors avoid Gogo (GOGO), which could have more room to go on the downside. The stock fell nearly 20% on Monday.
Brian Marshall, senior managing director at ISI Group, has a strong buy rating on shares of Apple (AAPL) with a $600 price target. Without repatriating some of its overseas money, the company will need to raise funds in order to perform its new buyback program. He suggested that Apple will continue to make small acquisitions, and will not make any large, blockbuster takeovers.
Grasso admitted he missed Apple's recent move higher but he is still not a buyer of the stock. He said if the rotation into "safety stocks" ceases then the stock will likely fall.
Scaramucci called shares of Apple cheap. Nathan said he would not buy the stock at current levels.
Najarian said investors can buy the stock because Apple's mobile payments service will be "huge."
Nathan said he is short Herbalife (HLF) via a long position in put options. He suggested the stock will hit $50.