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
TheStreet Open House

'Fast Money' Recap: Managing Market Highs

Stock quotes in this article: TWTR, FB, YELP, YHOO, WTW, CRM, AAPL, X, WLP, DDD, UA, TASR, AMZN, JDSU, SUNE, SBUX, TLT, BURL


Finerman remained pessimistic on Weight Watchers International (WTW), because it takes a long time to turn around its business, she said. 

Nathan suggested that investors should not "press" high valuation stocks on the short side, because they have sold off so much. He pointed out that shares of Salesforce.com (CRM) are starting to breakdown, but he was not a seller at current levels. 

Adami warned that CRM could pop higher, due to its high short interest. 

Apple (AAPL) raised $12 billion in the bond market, with its 10-year bonds paying a yield a 3.45%. This is only slightly higher than the 2.66% yield on 10-year U.S. Treasury yields. John Brynjolfsson, chief investment officer at Armored Wolf, was a guest on the show. He liked shares of Apple, due to its valuation, but did not care for the bonds over U.S. Treasuries, partly due to the illiquidity. 

The traders were asked if they would rather own shares of Apple, Apple bonds, or U.S. Treasuries:

Nathan and Kelly preferred U.S. Treasuries, while Adami liked Apple bonds and Finerman liked Apple stock. 

Adami said shares of Yahoo! are too cheap, given the valuation of the company and its 24% stake in Alibaba. He said shares should be above $40. 

Kelly said he did not find it comforting that Alibaba has yet to file for its IPO, like many U.S. investors had expected at this point. 

U.S. Steel (X) was the first stock on the show's "Pops & Drops" segment. Adami said to stay long the stock. 

WellPoint (WLP) jumped 6%. Finerman said she is staying long the stock. 

3D Systems (DDD) also popped 6%. Kelly said investors could buy the stock at current levels, but warned of the volatility. 

Under Armour (UA) climbed 4%. Nathan said he is long the stock, but would not be surprised to see it trading in the low $40s in the near future. 

Patrick Smith, founder and CEO of Taser International (TASR), was a guest on the show. He said the company is in the midst of an upgrade cycle. He added that a bulk of its growth potential lies in the international market. He argued that tasers are much safer in the field than many people initially thought. 

Adami said the stock is very volatile, but "worth a shot" on the long side. 

Regis Philbin was a guest on the show. He plans on selling his position in Apple this week, and is disappointed in Yahoo's price action. He is a buyer of Amazon (AMZN) at current levels, saying it could reach $400 by year's end. 

Adami called JDS Uniphase (JDSU) a "no touch" at current levels. 

Nathan pointed out the bullish options activity in shares of SunEdison (SUNE), where 50,000 July $20 call options were bought for $1.74. The break-even on the stock is at $21.74. 

For their final trades, Adami was a buyer of Facebook and Nathan was a seller of Starbucks (SBUX). Kelly was a buyer of the iShares 20+ Year Treasury Bond ETF (TLT) and Finerman was a seller Burlington Stores (BURL).


-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

Follow TheStreet.com on
Twitter and become a fan on Facebook.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.
2 of 2

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.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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